Hi Traders! EURCAD technical analysis and short-term forecast is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the H4 chart here.
- 1 EURCAD H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Downtrend Line Breakout, Heikin Ashi Candles, Higher Highs, ADX Indicator
- 2 EURCAD H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bullish Trend Pattern, ADX Indicator, Strong Support Zone
- 3 Technical Analysis & Forecast Summary
- 4 Trading Tips
EURCAD H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Downtrend Line Breakout, Heikin Ashi Candles, Higher Highs, ADX Indicator
On the H4 chart, the price which was moving higher 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 to the downside and the price which is moving higher has broken above the most recent downtrend line, we may consider these as other evidences of bullish pressure. Also, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward-moving market conditions so it basically reflects a bullish environment. In addition to this, 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. 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. So everything looks good here for the bulls and we may now move down to one timeframe lower and look for evidences supporting this short term bullish view.
EURCAD H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bullish Trend Pattern, ADX Indicator, Strong Support Zone
On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which is moving higher has created a bullish trend pattern here as well in the form of three higher highs, higher lows, we may consider this as another 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 is happening. 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. So everything looks good here as well for the bulls and until the strong support zone (marked in green) shown in the image below holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
EURCAD H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Downtrend Line Breakout, Heikin Ashi Candles, Higher Highs, ADX Indicator
EURCAD H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bullish Trend Pattern, ADX Indicator, Strong Support Zone
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?
I invite you to
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
Download our best forex indicators here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Home Trader Club Team.
