EURCAD POSSIBLE SHORT?

19 Eki 2014

The long term trend on this pair is still Bearish,we have pulled back to a very nice resistance level, with price near the 61.8 Fib level from previous swing high to swing low, we are also at the 100SMA and a previous horizontal resistance level now acting as support. We can also see CAD strength across other pairs, EUR is also weak fundamentally. Canadian economic data points: CPI tomorrow for a fresh read on inflation, and then retail sales and the Bank of Canada monetary policy decision, both on Wednesday, October 22nd. Given the recent weak global data, it’s a good chance we may get weak data and a bearish reaction.

Will be watching for suitable price action around 1.4436 to enter short, with a possible stop at 1.4573 and T.P at 1.4004. This gives us a nice Risk/Reward of about 1:3. This trade will be in our watchlist, for the upcoming week.

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