FxWirePro: EUR/CAD forms “shooting star” at 21DMA, major bearish trend remains intact – CPS to speculate short term trend

On both monthly and daily charts of EURCAD, we spot out shooting star pattern candles formed to highlight a caution for bulls.

The pair has formed the shooting star at 1.4552 levels (at 21DMA) on daily charts.

The current prices are rejecting at 21DMAs, where it is acting as resistance after Shooting star pattern, price drifts sideways to downswings.

In addition to that, leading oscillators are showing convergence with the price dips on daily and monthly chart.

RSI looks healthily converging with every price declines below 62 levels; it has been showing the same indication right from overbought territory. So, RSI signifies no deviation but the prevailing down streaks may sustain for some more slumps in the weeks to come.

While another leading oscillator (slow stochastic) hints us the overbought heaviness through %D crossover at 46 levels, so the bears don’t seem to lose rallies built by healthy volumes.

Lagging indicators, on the other hand, have been quite indecisive but certainly not bulls favor.

The current prices on monthly charts also slid below 7EMA.

The trading recommendation would be good to buy binary puts on every rally for minimum targets of 20 pips.