EURCAD - Ready to short it?

PAIR IN FOCUS: EURCAD
ACTION: SHORT
HORIZON: SHORT TO MEDIUM TERM

A bearish RSI divergence in H4 time frame signals an incoming price correction. I believe XXXCAD pairs are currently overextended and could see a correction soon. GBPCAD has a similar bearish RSI divergence and AUDCAD could reject the CZ and head lower. Look out for bearish price action for any entry confirmation.

Important to note that the inflation results for Canada would be a make or break for this set-up. It could possibly cause another swing high with lower RSI before the actual correction, or could simply drive this pair down.

The TP levels have been indicated on the chart. TP 3 is a medium-term target. Set your own Stop Loss for this set-up. Remember to manage your risk!

Feel free to discuss and comment, Cheers!

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