EURO CAD - BULLS HAVE THE EDGE WITH STRONG BULL CROWN
A Bull Crown Formation has now appeared at the Inner Downtrend Line following the sharp Bearish breakout from the Range Setup. This appears to indicate the start of an Uptrend in the days ahead, despite the predominantly Bearish direction of this currency pair. From the chart below, we can see that the Breakout that was taking place from the Range Setup on the Daily Chart has now ended with a rally above the Inner Downtrend Line. DAILY CHART- OVERALL DOWNTREND Breakouts from Consolidations such as these can include periods of pullbacks that eventually lead to the continuation of the trend. In fact, above the Inner Downtrend Line, a Range Setup has been formed above the Uptrend/Counter Trend Lines. If these are broken bearish with a strong candle, it could lead to the resumption of the overall breakout. DAILY CHART- RANGE SETUP However, there are two factors that give the edge to the Bulls and the likelihood of a new Uptrend in the days ahead....