FxWirePro: Don’t get bull trapped in EUR/CAD and “more bearish potential on Gartley”, likely to drag further dips

About a fortnight ago (precisely on 19th Jan) while conducting weekly and daily technical trend analysis of EURCAD, we had spotted bearish signals through which we were able to accurately anticipate the bearish targets. The "Bearish Gartley" pattern was briefed in our last post.

Please follow the below link for more reading on recent write up before proceeding further:

http://www.econotimes.com/FxWirePro-EUR-CAD-bearish-cypher-on-weekly-evidencing-daily-price-dips-%E2%80%93-expect-further-slumps-for-TP-at-15425-145270

Now switchover to compare the effects of this bearish pattern with current the price on both weekly and daily charts of EURCAD (almost declines of 994 pips from the highs of 1.6105 after the formation of Gartley), a resembling bearish engulfing pattern candle formed on weekly chart to highlight a caution for bulls. As you can observe this pattern that has occurred exactly on a trend line breach at around 1.5245 levels which is to be considered as a caution of previous of upswings.

Leading indicators to justify this view are showing downward convergence with the price dips on weekly chart. RSI (14) looks healthily converging with every price declines at 58.5876 (while articulating); it has been showing the same indication right from overbought territory. So, RSI signifies the prevailing down streaks may sustain for some slumps.

While another leading oscillator (slow stochastic) hints us the overbought heaviness through %D crossover above 80 levels which overbought zone though the bulls don't seem to lose rallies built by healthy volumes.

With MACD lagging these price dips on daily charts would signal the more dips in the weeks to come, hence, we think the current upswings are just momentary but foresee our next immediate targets at 1.4949 1st and 1.4525 levels upon breach of 1st target.