Hi Traders! EURCAD forecast follow up and update is here. On July 28th I shared this “EURCAD Technical Analysis And Forecast” post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
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Now let’s summarize the idea first:
On the H1 chart, we had a bullish trend pattern and then a correction was happening at that moment. So once the correction completes itself, I was then expecting the price to move higher further.
EURCAD H1(1 Hour) Chart Current Scenario
So based on the above-mentioned analysis, my view was bullish here and I was expecting the price to continue higher further. After the bullish trend pattern, we had a classical correction in the form of double wave down with the price creating a bullish divergence between the two waves. The price then moved higher and broke above the most recent downtrend line, retested it, and moved higher further, delivering 200+ pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
Currently, on the H4 chart, we have a potential bearish divergence that is forming at the moment based on the moving averages and histogram of the MACD indicator. This is something that we need to pay attention to. So if you are involved in the buys then this is a very important place to consider and manage your trade (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.
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To your success,
Certified Financial Technician