I have been studying the EURCAD charts this morning and have made some interesting observations:
Here is the weekly chart. The last time rapid rsi dropped from overbought when regular rsi did also there was a 2000 pip decline. We have only just started thatdecline. The 5 week consolidation just under 1.6300 is typical box consolidation and can indicate major tops. Also the 1.63000 level represented the end of wave 5 up.
Below is the daily. This is simple. We are coming down off a treble top. As long as we stay in the linear regression channel I am thinking we may get a retrenchment down to the 61.8% fib of the move up at 1.5150 zone. We are under the 50 sma on the daily also and the 10 sma crossed down thru the 50 a few days ago , nice bearishness in the charts. 1.5500 is the number to break , we tried it once and bounced hard as the usdcad gained strength in the middle of last week.
Now consider the second treble top as the dividing line , if we mirror image the move up , then the move down could be to 1.4500.
8 hour is simple. ... we have a bearish moving average stack , 10 over 20 over 50 . On the move up from 1.4500 the moving averages were in a bullish stack the whole way up , so unless this bearish stack is broken on the 8 hour we are heading down.
The 2 hour is forming a pennant , this is a continuation pattern to the downside.
Now if we break the 50 sma on the daily and the top of the pennant at 1.5700 to the upside all bets on the bearish bias are off.
