The EUR/CAD has reached the massive support area, which has been rejected once again. This might result in either a short term upswing or a trend reversal to the upside.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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Trade Idea Details:
Key support levels: 1.5040
Key resistance levels: 1.5110
Price Action: on the Daily chat it is very obvious that there is massive support near the 1.5065 area. It has been rejected multiple times, which shows how strongly bulls are defending this support area. Such price action might result in either a trend reversal or at least a strong correctional move to the upside. The nearest resistance is seen at 38.2% Fibs, which is a 1.5220 price area.
If we jump to the H4 timeframe the support area becomes much more obvious. Here we heave applied Fibonacci retracement level to the last upswing up, which is pointing out to the 61.8% Fibs resistance at 1.5213 level.
Moving on to the 1h chart, we can see the break and close above the downtrend trendline, suggesting the potential trend reversal to the upside, On this char, there are two Fibonacci retracement levels confirming 1.5213 as the target for buyers.
Potential Trade Idea:
Currently, there is a very attractive buying price at 1.5100 phycological level. The stop loss could be placed below the recent low at 1.5050, ideally at 1.5035 to meet the 1:2 risk/reward ratio. The target could be at 1.5213, confirmed by two Fibonacci retracement levels.