Hi Traders! Today I am sharing with you the EURCAD technical analysis and short-term forecast post. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidence on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! here). Now, let’s start our analysis from the highest timeframe which will be the H4 chart here.
On the H4 chart, we have a bearish divergence that has formed between the first high formed at 1.46402 and the second high formed at 1.46421 based on the MACD indicator. The price then moved lower and broke below the last low at 1.45002 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. In addition to this, the price has also broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached it’s extreme, which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidence supporting this short-term bearish view.
On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. Also, we had two strong support zones that have formed and the price which was moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in red) shown in the image below hold, my short-term view remains bearish here. A valid breakout below the most recent uptrend line would be the validation for this short-term bearish view.
EURCAD H4(4 Hours) Chart Analysis
EURCAD H1(1 Hour) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
Download our best forex indicators here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Home Trader Club Team.
Hi Traders! EURNZD short term forecast update and follow up is here. On May 1st,…
Hi Traders! Silver short-term forecast and technical analysis is here. We do our analysis on…
Stocks started the week on a positive note, with traders waiting to hear from a raft…
Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of May…
The world’s biggest technology companies drove a rebound in stocks ahead of Apple Inc.’s earnings, with Wall Street also gearing…
Hi Traders! Oil technical analysis and short term forecast post is here. We do our…
