Hi Traders! Today I am sharing with you the EURCAD technical analysis and 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 evidences 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 Traders Academy Club Spoiler alert – free memberships are available! here). Now, let’s start our analysis from the highest timeframe which will be the weekly chart here.
- 1 EURCAD W1(Weekly) Chart Analysis – Bullish Hidden Divergence
- 2 EURCAD D1(Daily) Chart Analysis – Important Support Zone, Bullish Divergence, Parabolic Sar
- 3 EURCAD H4(4 Hours) Chart Analysis – ADX Indicator
- 4 EURCAD H1(1 Hour) Chart Analysis – Bullish Trend Pattern
- 5 Technical Analysis & Forecast Summary
- 6 Trading Tips
EURCAD W1(Weekly) Chart Analysis – Bullish Hidden Divergence
On the weekly chart we have a bullish hidden divergence that has formed between the first low that has formed on 16th February 2020 and the second low that has formed on 31st May 2020 based on the MACD histogram indicator which we may consider as an evidence of bullish pressure. In addition to this, there are no evidences that show that the current trend is over yet. We may now move down to one timeframe lower and see if we can find evidences supporting this bullish view.
EURCAD D1(Daily) Chart Analysis – Important Support Zone, Bullish Divergence, Parabolic Sar
On the daily chart, we have a strong support zone that has formed, this strong support zone coincides with the psychological round number 1.50, which makes this area an important support zone for us. The price which was moving lower reached this important support zone, respected it, and is currently moving higher. We also have a bullish divergence that has formed between the first low that has formed on 29th April 2020 and the second low that has formed on 2nd June 2020 based on the MACD histogram indicator which we may consider as an evidence of bullish pressure. This bullish divergence also supports the weekly bullish hidden divergence. In addition to this based on the Parabolic Sar the dots are below the price which we may consider as another evidence of bullish pressure.
EURCAD H4(4 Hours) Chart Analysis – ADX Indicator
Looking at the H4 chart we could see that there are no evidences that show that the trend is over here as well. Also, the ADX indicator gave a bullish signal 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 an evidence of bullish pressure. So the bottom line here is that the H4 chart has evidences supporting the bullish view.
EURCAD H1(1 Hour) Chart Analysis – Bullish Trend Pattern
On the H1 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then further continuation higher. Currently, it looks like a correction is happening, once this correction completes itself we may then expect the price to continue higher further.
Technical Analysis & Forecast Summary
EURCAD W1(Weekly) Chart Analysis
Bullish Hidden Divergence
EURCAD D1(Daily) Chart Analysis
Important Support Zone, Bullish Divergence, Parabolic Sar
EURCAD H4(4 Hours) Chart Analysis
EURCAD H1(1 Hour) Chart
Bullish Trend Pattern
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