Hi Traders! Today I am sharing with you the EURCAD buy idea technical analysis post. In this pair based on the multi-timeframe analysis method we are going to look for the evidences on three timeframes that is on the current trading timeframe and two timeframes higher, when we get evidences which supports our view on these three timeframes this makes the setup very reliable. Now lets start our analysis from the higher timeframe which will be the daily chart here.
- 1 EURCAD D1(Daily) Chart Analysis – Range, Bullish Divergence On MACD And CCI Indicator
- 2 EURCAD H4 (4 Hours) Chart Analysis – Bullish Divergence, Higher Highs, Parabolic Sar
- 3 EURCAD H1 (1 Hour) Chart Analysis – Higher Highs, Parabolic Sar, Heiken Ashi Candles
- 4 Technical Analysis & Forecast Summary
EURCAD D1(Daily) Chart Analysis – Range, Bullish Divergence On MACD And CCI Indicator
On the daily chart the price is moving inside a range which started on 12th September 2019, this range is formed by the highs and lows reaching parallel resistance and support zones. The price which is respecting this range so far has currently reached the bottom of it and is moving higher. In addition to this the price has created a double bottom at the technical support area of this range and also we had a bullish divergence based on the MACD indicator and the CCI indicator, we may consider these as evidences of bullish pressure. We may now look for more evidences of bullish pressure on lower timeframes in order to start looking for the buys.
EURCAD H4 (4 Hours) Chart Analysis – Bullish Divergence, Higher Highs, Parabolic Sar
On the H4 chart the price which was moving lower has created a false break with bullish divergence based on the MACD histogram and moving averages, then the price moved higher creating higher highs, we also had higher highs on the MACD histogram and the RSI Indicator. In addition to these the dots are below the price based on the Parabolic Sar, we may consider these as evidences of bullish pressure. So similar to that of the daily chart the H4 chart too has evidences that supports our bullish view. We may now drop down to the third timeframe and see if it has evidences that supports this bullish view.
EURCAD H1 (1 Hour) Chart Analysis – Higher Highs, Parabolic Sar, Heiken Ashi Candles
Looking at the H1 chart we can see that it is in perfect synchronization with its higher timeframes, as it has evidences which supports the bullish view. The first thing we can notice here is the higher highs creation and also the Parabolic Sar is in our favor here as well, as you can see the dots are below the price. 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, so until the condition changes my view remains bullish here. We may now look to buy retraces with more bullish evidences (evidences could be in the form of candle stick patterns, false breaks, trend line breakout etc… supporting the bullish view).
Technical Analysis & Forecast Summary
Lets recap and summarize the analysis we had so far:
EURCAD D1(Daily) Chart Analysis:
- Range, Bullish Divergence On MACD And CCI Indicator
EURCAD H4 (4 Hours) Chart Analysis:
- Bullish Divergence, Higher Highs, Parabolic Sar
EURCAD H1 (1 Hour) Chart Analysis:
- Higher Highs, Parabolic Sar, Heiken Ashi Candles
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