What we know:
Price has been extremely bullish.
RSI was between 80 - 40 region, especially since the period shown with the blue
trend line.
1.4413 acted as resistance, so this
could come in as support.
1.411 - 1.401 was resistance turned
to support.
RSI's current values show a peak of
84.31 in this uptrend. Price makes a higher high while RSI starts pushing
lower.
Observations:
Not a good idea to short as the
trend is up. Price is likely going through a correction. Possible reversal
could happen at 1.445 - 1.441.
But.. if RSI does respect its
recent moves, we could see RSI drop to 30
If you scroll to the left, since
RSI bottomed out at 20 and started the bullish trend, the lowest it made was
25. So if RSI dips to 30, it should indicate a dip to this rally, making it a
prime area to buy EURCAD.
Comparing previous RSI moves (rep.
by arrows/distance), 1.4459 looks like a possible level to reach.
What we need:
A break of 1.44 level to retest 1.411 - 1.401. Then look for bullish
candle patterns + RSI confirmation to go long. Will update this chart when we
get there.
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