EURCAD Technical Analysis And Forecast

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EURCAD Forecast Follow Up and Update

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.

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 Technical Analysis And Forecast

 

 

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 Technical Analysis And Forecast

 

 

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 Technical Analysis And Forecast

 

 

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.

EURCAD Technical Analysis And Forecast

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 

ADX Indicator

EURCAD H1(1 Hour) Chart 

Bullish Trend Pattern

 

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 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.

Also, don’t forget to protect your buy 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.

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If you have any further questions, don’t hesitate to drop a comment below!

 

To your success,

Vladimir Ribakov
Certified Financial Technician

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