EURCAD Technical Analysis And Short Term Forecast

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Technical Analysis - EURCAD Short Term Forecast

Hi Traders! Today I am sharing with you the EURCAD technical analysis and short term 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 daily chart here.

EURCAD D1(Daily) Chart Analysis – Psychological Level, Multiple False Breaks, Bullish Divergence, Parabolic Sar, ADX Indicator

On the daily chart, the price which was moving lower reached the psychological level 1.35 respected it and bounced higher from this zone. Also, we could see that the price which was moving lower has created multiple false breaks with bullish divergence between the first low that has formed at 1.36723 and the second low that has formed at 1.33876 based on the MACD indicator, we may consider these as evidences of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. Also, 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, currently there are no signs opposing this short term bullish view. We may now move down to lower timeframe and look for evidences supporting this short term bullish view.
EURCAD Technical Analysis And Short Term Forecast

 

 

EURCAD H4(4 Hours) Chart Analysis – Higher Highs, ADX Indicator, Two Strong Support Zones

Looking at the H4 chart, we could see that the price which is moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, the ADX indicator gave a bullish signal here as well 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 hold my short term view remains bullish here and I expect the price to move higher further.
EURCAD Technical Analysis And Short Term Forecast

Technical Analysis & Forecast Summary

EURCAD D1(Daily) Chart Analysis 

  • Psychological Level, Multiple False Breaks, Bullish Divergence, Parabolic Sar, ADX Indicator

EURCAD H4(4 Hours) Chart Analysis 

  • Higher Highs, ADX Indicator, Two Strong Support Zones

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 short term 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.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

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

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team

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