Today, the formations of engulfing-outside bars appeared on several currency pairs. On EURUSD and EURCAD these are bearish engulfings suggesting the end of an upward swing and the start of a downward correction.
EURUSD – bearish engulfing at channel resistance
The price has reached the resistance of the downward flag (upward channel). Possible return to flag support.
A downtrend flag has appeared on the H4 chart. The price reached the resistance and turned back, indicating a false breakout from the formation. A bearish engulfing formation is emerging. The price has already broken out to the bottom and the MACD has entered a downward phase. High probability of further declines towards the support of the flag formation.
EURCAD – bearish engulfing
Similar to the EURUSD, a bearish engulfing formation is also emerging here. MACD confirms the change in sentiment to downward. The downward move may be limited to the hypothetical trendline (marked with a dotted line).
We can discuss this week’s events and their possible impact on the quotations of currencies and other financial instruments during the live sessions:
LIVE EDUCATION SESSIONS
This WEEK (23-28 October 2023 ) I am pleased to invite you to several online sessions. Below is the schedule of meetings:
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
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