Hi Traders! EURCAD forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. 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! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).
EURCAD D1(Daily) Chart Analysis – Bullish Channel, Parabolic Sar, RSI Indicator
On the daily chart, we have a bullish channel that has formed which started on 9th November 2020. This channel is formed by the highs and lows reaching parallel support and resistance zones. The price which was respecting this channel so far has currently broken below this channel and is holding below it. We may consider this as evidence of bearish pressure. Also, based on the Parabolic Sar we could see that the dots are above the price and currently there are no signs opposing this bearish view. In addition to this, we also have a breakout of the uptrend line based on the RSI indicator which we may consider as another evidence of bearish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bearish view.
EURCAD H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Bearish Hidden Divergence, Strong Resistance Zone
On the H4 chart, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we were looking for has happened. In addition to this, we had a bearish hidden divergence that has formed between the first high that has formed on 11th January 2021 and the second high that has formed on 19th January 2021 based on the MACD indicator, we may consider this as another evidence of bearish pressure. Also, we have a strong support zone that has formed and the price which is moving lower has broken below this zone and is holding below it. Currently, this strong support zone is acting as a strong resistance zone for us. Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further.
Technical Analysis & Forecast Summary
EURCAD D1(Daily) Chart Analysis
- Bullish Channel, Parabolic Sar, RSI Indicator
EURCAD H4(4 Hours) Chart Analysis
- Bearish Trend Pattern, Bearish Hidden Divergence, Strong Resistance Zone
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this 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 join us in our live market analysis, on daily basis, and improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
