Based on recent wave structure, the EUR/CAD has likely completed 5-waves to the downside and should be set for a corrective rally back towards 1.4565 at which point I will be on the lookout to establish a short position.
However, traders will want to make sure that EUR/USD does not gather too much upside strength, as that may offset any CAD strength relative to EUR/USD. For instance, a push above 1.3540 in EUR/USD could give the bulls some fuel… and this may disrupt the setup on the EUR/CAD.
Remember, you always want to know what other like pairs and crosses are doing in addition to focusing on the technicals of the pair/cross you are looking to trade. Trade safe.
EUR/CAD 90 min chart
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
