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EURCAD H1(1 Hour) Chart Analysis – Downtrend Line Breakout, Bullish Convergence, Two Strong Support Zones
On the H1 chart, the price which was creating series of lower highs, lower lows has made a turn around and has created higher highs for the first time in a while, which we may consider as evidence of bullish pressure. In addition to this, the price has also broke above the most recent downtrend line, which we may consider as another evidence of bullish pressure. Also, we could see that the price has created a bullish divergence which formed between the first low formed at 1.46165 and the second low formed at 1.46104 based on the MACD indicator. The price then moved higher and broke above the last high at 1.46653 creating higher highs, we have this higher highs on the MACD indicator as well, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as other evidences of bullish pressure. Generally after a bullish convergence we may expect correction and then further continuation higher and currently, it looks like a correction is happening. So everything looks good here for the bulls and until the two strong support zones hold my short term view remains bullish here and I expect the price to move higher further after pullbacks.
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Arvinth Akash
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