EURCAD AT KEY RESISTANCE

EURCAD has reached a zone of strong previous rejection.
Touching 70 on the RSI with Bearish Divergence and having entered this area of previous rejection sets up for a potential short with tight stoploss above the area of rejection.

CAD CPI numbers came in line with expectation today with a continuation of trend but we're looking short term overbought with very positive risk/reward possibilities for shorts.

Comentário:

After this post price continued to drop by over 115 pips at it's lowest point, for a successful short. With a tight stoploss above area of rejection shown this had max potential for a 6 R trade. Of course we can't expect a perfect exit, but a 3 - 4 R trade here would've been quite achievable.

Since then price surged toward the area of rejection and broke through with momentum. At the time of writing it's retraced into that previous area of resistance - will the resistance become support?