Hi Traders! EURCAD technical analysis and short term forecast 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 Home Trader Club Spoiler alert – free memberships are available!
EURCAD H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Bullish Hidden Divergence, ADX Indicator
On the H4 chart, the price has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction has happened in the form of double wave down. In addition to this, the price which is currently moving lower has created a bullish hidden divergence that has formed between the first low that has formed at 1.45535 and the second low that has formed at 1.46485, followed by a continuing bullish divergence between the first low that has formed at 1.46485 and the second low that has formed at 1.45295 based on the MACD indicator we may consider this as another 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. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below (marked in green) holds my short term view remains bullish here and I expect the price to move higher further.
Trading Tips
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Arvinth Akash
Home Trader Club Team
