Since the 2017 low, EURCAD has been trending higher.
However, it hasn’t been the most impressive rally, at least not since the pair topped out in March of last year.
For the last thirteen months, EURCAD has been moving sideways. The pair has even carved a few lower highs and lower lows along the way.
And if we study the price action since September 2017, we find a trend line that could be the difference between a higher EURCAD or a lower one in the coming months.
Here it is on the weekly time frame:
WE RECOMMEND THE VIDEO: Forex Proper Risk Management Tool MT4 and MT5
Join me on Instagram Download the Calculator ...
For those who have been trading for a while, you’ll notice right away that the shape is similar to a head and shoulders pattern.
Get FREE Access to Daily Price Action When You Open and Fund an Account With Blueberry Markets!
I’m not convinced that it is one, though.
I prefer a head and shoulders to form after an extended move higher.
As it is, the head of the pattern includes prices that EURCAD visited in early 2016.
But that does not mean it won’t play out as a reversal pattern of sorts. Sometimes the more obscure and imperfect formations perform the best.
I do, however, think this trend line support needs to hold to keep EURCAD afloat.
If sellers manage to break it on a daily closing basis, we could see EURCAD trend lower toward the 2018 low at 1.4750.
There is also a strong case to be made for a move to the trend line’s inception point. That would equal a move to the 1.4500 handle.
Alternatively, EURCAD buyers need to secure a daily close above 1.5040 resistance to alleviate some of the pressure.
Such a break would re-expose 1.5200.
I sold EURCAD on Monday at 1.5036 based on Friday’s bearish pin bar. I won’t add to the position until sellers can break trend line support just above 1.4900.
We’ll see if the consecutive bearish pin bars on Friday and Monday mean anything here.
I also announced this entry in the member’s area.
Want to see how we’re trading EURCAD?
Click Here to join us and save 40% – Ends April 30th!
Leave a Comment:
13 comments
Now you can get access to the same professional Forex charts I use.
Get access today:
These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.
Is it free Justin? Is it only graph tu analysis, something like Metastock or I trading platform? Thanks for answers.
I see. This is forex broker. ok.
Thank you for your insights and very educational at that. Stay Blessed
You’re welcome. Glad it’s helpful.
perseverance is key… Thank you JB.
I want you to be my mentor how i can get help?
Sure, just visit the link below to learn all about it.
It breaks above, what is your stop loss for the trade . 1.5036 entry and sl ??
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Daily Price Action, its employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.