EURCAD Detailed Analysis - Long SetupYellow zones- critical zones based on the monthly/weekly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
After last week’s COT report, we can see an increase in the EUR “long” contract sizes, while the CAD is showing some decrease in the “short” contract sizes.
Our previous analysis happened as show for the 1st scenario. A “W” structure was formed, which received support from its neckline.
Now we broke above the 4H closed triangle and price reached the 1.55300 area which is also a daily critical zone. The price reached the 4H daily critical zone which lies within the monthly critical zone near the 1.54000 zone. We have 2 possible scenarios:
1. Price receives support from the 1.54000 zone and goes for a second attempt to break the daily critical near the 1.55300. If this happens, we can expect for the price to finish its “M” structure which is visible on the daily time frame.
2. Price receives support from the second 4H critical zone near the 1.53500 area which also lies within the monthly critical area and matches perfectly with the 0.618 Fibonacci level. Then the price will go towards the daily critical near the 1.55300 zone.
Happy Trading!
