EURCAD Short Term Forecast Follow Up And Update

Hi Traders! EURCAD short term forecast follow up and update is here. On June 8th I shared this “EURCAD Technical Analysis And Short Term 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!

My Idea:

Looking at the H1 chart, we could see that the price which was moving lower has created a bullish divergence here as well, which has formed between the first low that has formed at 1.34217 and the second low that has formed at 1.33893 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. So everything looks good here for the bulls and until the H4 key support zone holds my short term view remains bullish here. If we get a valid breakout above the high at 1.34760 we may then consider it as a validation for this short term bullish view and may expect the price to move higher further.

EURCAD H1(1 Hour) Chart Current Scenario

In this pair based on the above-mentioned analysis, my short term view was bullish here and I was expecting the price to move higher further until the key support zone holds. Also, I mentioned that “If we get a valid breakout above the high at 1.34760 we may then consider it as a validation for the bullish view and may expect the price to move higher further”. The price action followed my analysis exactly as I expected it to here. The validation for the bullish view which is a valid breakout above the high at 1.34760 happened as I expected it to, we then had a pullback but most importantly the price was holding above the key support zone. The price then moved higher further as I expected it to and delivered 300+ pips move so far!

On the H1 chart, the market provided us with various facts supporting this short term bullish view. After the breakout above the high at 1.34760 the price which was moving lower created a bullish divergence between the first low that has formed at 1.34178 and the second low that has formed at 1.34015 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. Then as you can see in the image below how the price moved higher after that and provided an excellent move to the upside!

(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)

So traders, when it comes to trading, there are various important factors that we need to pay attention to, just because we have a good setup doesn’t mean that we can enter the trade randomly and it will pay us huge profits. First of all, we need to validate the entry and we should have a perfect entry plan to get into the trade which is a key factor when it comes to trading. This EURCAD short term forecast is yet another good example of this scenario.