Bear Flag

Good morning.

The Euro took a hit yesterday and we could see further decline on this pair today. A contrarian view could be on offer.

We were asked if we could expain our forex anlaysis from yesterday on the bear stance of the Dallar Canadian so here it is.

The trend is down although more recently it is in a range. Short term it looks like we have a bear flag formation. The MACD did not converge. The figure is not far from currenct price action. Lastly, we have a sell signal on our strategies which incorporates a very tight stop loss.

Now, the truth of the matter is it does not matter from a discretionary trading point of view if this pair is going up or down, either way a profit can be established in most cases.


Chart courtesy of Advanced GET. Data provided by eSignal.

Good trading.

Forex Analyst
Javid Shaik