Here on the Weekly for 
EURCAD, price has formed a strong Bullish reversal pattern called a Morning Star at the 38.2% Retracement Level! This pattern consist of:
1) Large Bearish Candle
2) Small Bullish -or- Doji Candle
3) Large Bullish Candle
There are a couple rules this pattern must follow as well, which are:
- There MUST be a Gap Down from the Close of the First Candle to the Close of the Second Candle.
&
- There MUST be a Gap Up from the Close of the Second Candle to the Open of the Third Candle.
We can see both these rules have been met and the Third Candlestick being a Large Bullish Candle is the confirmation that price is reversing!
As the week comes to an end, we can see price is looking to Close close to the High of the First Candlestick in the pattern so we should expect price to remain Bullish into the coming weeks.
The next area of Resistance will come at the Falling Resistance shown as the Trendline above and if price is able to make a Breakout of that, we could be looking atEURCAD possibly going higher!
Fundamentally, both the ECB and BOC HELD Interest Rates this past month, but current Inflation readings could change this story going forward with EUR Inflation having been holding steady while CAD Inflation saw some decline creating an imbalance:
EUR-
CPI (y/y) = Actual - 2.8%/ Forecast - 2.8%/ Previous - 2.8%
Core CPI (y/y) = Actual - 2.4%/ Forecast - 2.4%/ Previous -2.4%
CAD-
Median CPI (y/y) = Actual - 1.9%/ Forecast - 2.1%/ Previous - 2.1%
Trimmed CPI (y/y) = Actual - 1.8%/ Forecast - 2%/ Previous - 2%
Common CPI (y/y) = Actual - 2.6%/ Forecast - 2.5%/ Previous - 2.7%
Today, Friday July 31st, CPI Flash y/y and Core CPI Flash y/y for EUR released and showed a .1% increase in Inflation with CAD having a GDP m/m print of a decrease by .3% which helped influence the current rise in price onEURCAD.
This could lead the ECB to look for more Holds or Hikes with BOC potentially looking for Cuts and this scenario would Strengthen the EUR and Weaken the CAD!!
EURCAD, price has formed a strong Bullish reversal pattern called a Morning Star at the 38.2% Retracement Level! This pattern consist of:1) Large Bearish Candle
2) Small Bullish -or- Doji Candle
3) Large Bullish Candle
There are a couple rules this pattern must follow as well, which are:
- There MUST be a Gap Down from the Close of the First Candle to the Close of the Second Candle.
&
- There MUST be a Gap Up from the Close of the Second Candle to the Open of the Third Candle.
We can see both these rules have been met and the Third Candlestick being a Large Bullish Candle is the confirmation that price is reversing!
As the week comes to an end, we can see price is looking to Close close to the High of the First Candlestick in the pattern so we should expect price to remain Bullish into the coming weeks.
The next area of Resistance will come at the Falling Resistance shown as the Trendline above and if price is able to make a Breakout of that, we could be looking at
EURCAD possibly going higher!Fundamentally, both the ECB and BOC HELD Interest Rates this past month, but current Inflation readings could change this story going forward with EUR Inflation having been holding steady while CAD Inflation saw some decline creating an imbalance:
EUR-
CPI (y/y) = Actual - 2.8%/ Forecast - 2.8%/ Previous - 2.8%
Core CPI (y/y) = Actual - 2.4%/ Forecast - 2.4%/ Previous -2.4%
CAD-
Median CPI (y/y) = Actual - 1.9%/ Forecast - 2.1%/ Previous - 2.1%
Trimmed CPI (y/y) = Actual - 1.8%/ Forecast - 2%/ Previous - 2%
Common CPI (y/y) = Actual - 2.6%/ Forecast - 2.5%/ Previous - 2.7%
Today, Friday July 31st, CPI Flash y/y and Core CPI Flash y/y for EUR released and showed a .1% increase in Inflation with CAD having a GDP m/m print of a decrease by .3% which helped influence the current rise in price on
EURCAD.This could lead the ECB to look for more Holds or Hikes with BOC potentially looking for Cuts and this scenario would Strengthen the EUR and Weaken the CAD!!
Uwaga
A Breakout of the Inverse Head and Shoulders pattern has been Retested and was successful! This Bullish reversal on the Lower Timeframe adds confidence in the formation of the Morning Sat on the Higher Timeframe.
For All Things Currency,
Keep It Current,
With Novi Fibonacci!
~~~~
Keep It Current,
With Novi Fibonacci!
~~~~
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For All Things Currency,
Keep It Current,
With Novi Fibonacci!
~~~~
Keep It Current,
With Novi Fibonacci!
~~~~
Powiązane publikacje
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.