Overview:
The EUR/CAD has repeatedly approached our entry zone around the 0.75 Fibonacci retracement level without a significant breakthrough, offering profitable short-term opportunities. As we settle into a holding pattern, anticipation builds for the expected larger move to the downside.
Entry Point:
Our entry is pegged at the 0.75 Fibonacci mark, a gold line drawn at 1.47482. This level has historically been a turning point, and we're banking on its continued significance.
Stop Loss:
The stop loss is set slightly above the recent highs and our entry, at the 1 Fibonacci level of 1.47792, to cap potential losses should there be an unexpected bullish surge.
Profit Targets:
Our exit strategy is ambitious yet calculated, aiming for a significant drop towards the 0 Fibonacci level at 1.46552. This substantial move to the downside aligns with the observed bearish momentum indicated by the Money Flow Index (MFI), which is currently below 50, reinforcing our bearish bias.
Rationale:
The consolidation pattern observed at our entry point suggests that upward momentum is waning and that bears might soon take control, driving prices lower. The MFI’s bearish money flow adds weight to our expectation of a forthcoming downward move. While we’ve pocketed gains from recent upticks to this level, the overarching setup points to a more considerable decline.
Risk Management:
This trade offers a favorable risk-reward ratio, with a tightly managed stop loss in case of adverse price movement. Traders should adjust their position sizes according to their risk tolerance and monitor the trade for signs of a shift in market sentiment that could invalidate our bearish outlook.
The EUR/CAD has repeatedly approached our entry zone around the 0.75 Fibonacci retracement level without a significant breakthrough, offering profitable short-term opportunities. As we settle into a holding pattern, anticipation builds for the expected larger move to the downside.
Entry Point:
Our entry is pegged at the 0.75 Fibonacci mark, a gold line drawn at 1.47482. This level has historically been a turning point, and we're banking on its continued significance.
Stop Loss:
The stop loss is set slightly above the recent highs and our entry, at the 1 Fibonacci level of 1.47792, to cap potential losses should there be an unexpected bullish surge.
Profit Targets:
Our exit strategy is ambitious yet calculated, aiming for a significant drop towards the 0 Fibonacci level at 1.46552. This substantial move to the downside aligns with the observed bearish momentum indicated by the Money Flow Index (MFI), which is currently below 50, reinforcing our bearish bias.
Rationale:
The consolidation pattern observed at our entry point suggests that upward momentum is waning and that bears might soon take control, driving prices lower. The MFI’s bearish money flow adds weight to our expectation of a forthcoming downward move. While we’ve pocketed gains from recent upticks to this level, the overarching setup points to a more considerable decline.
Risk Management:
This trade offers a favorable risk-reward ratio, with a tightly managed stop loss in case of adverse price movement. Traders should adjust their position sizes according to their risk tolerance and monitor the trade for signs of a shift in market sentiment that could invalidate our bearish outlook.