The consolidation of EURCAD since February is about to end. The squeeze is about to explode heavily and no one should be in the wrong direction.
After the plummet since day 01 of the year, the cross has retraced fully to the 38% fib line and faltered slightly below the 50%.
The geometrical structure points to a fabulous rectangle bordered by 1.5170 and 1.4930 that should yield an equivalent of 240 pips as target. A close above 1.5170 or below 1.4930 is needed before any trade is manufactured.
The bearish post is most probable as the formation of a rectangle after a significant plummet is translated onto a pause before another descent. The squeeze trendlines are coming to an end, pointing to a blow out. The head and shoulder pattern from 21 May gives more power to the bear basket. Once a close below the neckline of the H&S is triggered, below 1.4980, you may start preparing the bearish move. However, as said, only a close below the rectangle base would perform a significant yield of 240 pips.
On the other side, the bull phenomenon is constructed via only a close above the resistance of the rectangle: 1.5170.
The exit of the trade should be labeled solely on a close at the other side of the border of the rectangle.