EUR/CAD – 93% Traders Are SHORT! Bearish Reversal Brewing? for OANDA:EURCAD by asimafridi

EUR/CAD – 93% Traders Are SHORT! Bearish Reversal Brewing? for OANDA:EURCAD by asimafridi

The EUR/CAD pair is currently in a bullish trend, but multiple technical and sentiment signals are pointing toward a possible trend reversal.

🔍 Key Observations:

Trend: Bullish (but losing momentum)

Bearish Divergence: Price making higher highs while RSI indicators show lower highs.

Pattern: Rising Wedge – a classic bearish reversal formation.

Harmonic Analysis: AB=CD pattern is approaching the potential reversal zone (PRZ).

EMA Insight: Price candles have moved across the 20 EMA and 50 EMA, signaling weakening bullish momentum.

Sentiment (Myfxbook.com): 93% of traders are currently short on EUR/CAD — strong crowd bias toward the downside.

📌 Trade Setup:

Bias: Bearish

Strategy: Sell Stop at breakout of previous Higher Low (HL)

Entry Price (EP): Sell Stop @ 1.59755

Stop Loss (SL): 1.60626

Take Profit 1 (TP1): 1.58884 (R:R = 1:1)

Take Profit 2 (TP2): 1.58013 (R:R = 1:2)

Lot Size: 0.15

Risk: $200 | Potential Reward: $200-$300

💡 Trade Execution Plan:

We will enter only after HL breakout confirmation to avoid false moves. This setup aligns Rising Wedge pattern, Bearish Divergence, EMA cross weakness, Harmonic PRZ zone, and bearish sentiment — a powerful confluence for a potential downside move.

📊 Technical Summary:

Combining price action, chart patterns, harmonics, momentum, and trader sentiment gives this short setup high probability.

📢 Your Turn:

What’s your take on this trade? Will the market follow the 93% bearish sentiment, or could this be a trap?

💬 Drop your analysis in the comments, let’s discuss!

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