Hi Traders! EURCAD bullish convergence provides buy opportunity for us. A detailed analysis of this bullish setup is as follows:
EURCAD W1 Chart:
On the weekly chart the price which is moving lower has created a double wave down and the price has currently reached a critical zone formed by the fibo levels of the cycles. In addition to this we also have a bullish divergence that has formed which we may consider as an evidence of bullish pressure. We may now look for more evidences of bullish pressure on lower timeframes in order to join the bulls.
EURCAD D1 Chart:
On the daily chart we have a bullish divergence that has formed which we may consider as an evidence of bullish pressure, we may now start looking for bullish setups with more bullish evidences on lower timeframes in order to start looking for the buys.
EURCAD H4 Chart:
On the H4 chart the price has created a bullish divergence and then the price moved higher creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario we may look for corrections to happen and then continuation to the upside. Currently the pullback that we were looking for has happened, we may now look for more bullish evidences in order to join the bulls.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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