FxWirePro: EUR/CAD minor trend forms triple top pattern, intermediate trend slides through sloping channel – Bid boundary binaries for assured yields

Despite today’s rallies, we foresee price slumps upon the formation of the triple top pattern.

On weekly chart plotting, with peak 1 has rejected at 1.5226, peak 2 at 1.5074 and peak 3 at 1.5019 levels.

Please be noted that the triple top reversal is a bearish reversal pattern typically found on candlestick charting methodology. There exist three appropriate or equal peaks trailed by a break below support which is yet to occur in this instance. As the major reversal patterns, these patterns usually form over an 8 to 12 weeks period. 

While leading oscillators are signaling the intensified bearish momentum as both RSI and stochastic curves are converging downwards.

On the other hand, you could very well observe the intermediate trend has been sliding through sloping channel, after the rejection of channel resistance, the bears have managed to drag price slumps in the recent past, evidently, the current prices have slid below 7EMAs (i.e. 1.4830 marks).

On a broader perspective, the major trend has been edgy through rising channel. One could see as and when the prices touched channel baseline and top line, the price pattern behaves in an adverse way.

In the recent past, the bearish candles with big real body have occurred as it reaches the channel resistance (at peaks of 1.5186 and 1.5019 levels), consequently, we’ve seen their bearish functionalities.

Both RSI and stochastic curves show the downward convergence to the price slumps (on both daily as well as monthly charts). This indicates the lingering bearish sentiments.

While the lagging indicators have been indecisive.

Hence, for today, we foresee price to remain in a range between 1.4866 and 1.4757 levels. Bidding boundary binary options with strikes of 80-100 pips difference would fetch us certain yields with magnified effects.

Currency Strength Index: FxWirePro's hourly EUR spot index has stuck -3 (which is absolutely neutral), while hourly CAD spot index was at 159 (extremely bullish) at 07:22 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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