Hi Traders! EURCAD bearish convergence provides sell opportunity for us. A detailed analysis of this bearish setup is as follows:
EURCAD H4 Chart:
On the H4 chart the price has created a classical setup, we had a bearish divergence and then the price moved lower and created lower lows thus forming a bearish convergence for us, we may consider this as an evidence of bearish pressure. As per the book scenario we may now expect pullbacks to happen and currently it looks like a pullback is happening. We may now look for more bearish evidences on lower timeframes in order to join the bears.
EURCAD H1 Chart:
On the H1 chart currently the price is moving inside a bearish flag pattern. If the price breaks and holds below the bottom of this pattern, we may consider this as an evidence of bearish pressure. We may then start looking for short term sells with more bearish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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