EURCAD
Good morning everyone,
I like keeping an eye on the monthly charts for signs of over-extension as they more often than not can signal significant long-term market turning points. The EURCAD is currently oversold on the stoch but isn't displaying what you might call a flush-out.
If you look back to previous instances (poorly drawn green circles), you can see that in most instances, the turns were preceded by relatively fast moves and culminated in reverse pressure at or beyond the Bollinger bands. Looking at the EURCAD right now, the price is indeed oversold, but nothing in the price action yet suggests that we're near an imminent reversal. Moreover, looking at the weekly, you can see that price has broken a long-term trendline, which would suggest more downside to come (Gulf tensions and the effect on oil price being a potential catalyst).
All in all, it's a 'watch and wait', but the point is it's worth keeping an eye on the monthly timeframe in order to preempt the big moves.