EURCAD MARKET ANALYSIS

 Good afternoon traders I hope you're all doing well and you're ready to take advantage of the opportunities in the markets. Into the markets today, I'm looking at EURCAD where price has rallied into a key H1 & H4 supply zone at 1.48863 & 1.18484 which is the origin of the previous major drop to the key H4 & daily demand zone at 1.45115 & 1.44638. Price filled the major H4 & daily range from the key H1 & H4 supply zone to the key H4 & daily demand zone and back to the key H1 & H4 supply zone. Price rallied into supply and formed a strong rejection wick inside supply followed by a H1 bearish engulfing candle with 2 candle closes below supply on H1 but on H4 price left a strong rejection wick. Took sell positions during London session at 1.48464 with SL at 1.48850. Setup taken is a rally base drop, a reversal setup and my target is at the next H4 demand zone at 1.46546 & 1.46146 at 1.46600.

Price rallied deeper into supply hence putting my positions in drawdown before the expected move happens. Price formed 2 H1 rejection candles showing potential selling pressure. However, there was no candle close below supply yet to confirm the bearish sentiment. Price consolidated inside supply during early NY session then gained strong bearish momentum during mid NYSE dropping in 3 strong H1 bearish candles to the 1st H1 low at 1.47870 confirming a shift in market structure to bearish. I anticipate a continuation of the drop to the next H4 demand zone at 1.46546 & 1.46146 but my target is at 1.46600.

Price has been in consolidation after breaking the H1 low at 1.47900 and formed a lower low at 1.47600. Price consolidated since London session into NY session with no significant high formed showing a potential continuation of the drop lower. Price formed a lower low at 1.47300 on H1 & H4 showing a potential bearish continuation as previously anticipated. I anticipate a continuation of the drop back to the next H4 demand zone for price to fill the full H1 & H4 range from the H4 demand zone to the key H1 & H4 supply zone and back to the H4 demand zone.