EURCAD Technical Analysis
Since March of 2018 EURCAD has been trending lower. The pair at the moment remains bearish and we expect price to continue lower towards the 1.4150 area. Since November 2019 till now I been posting on Twitter/StockTwits the right side to trade was selling the pair. Bearish market patterns are visible signalling downside momentum remains active.
EURCAD Weekly Chart November 3/2019 : Posted the chart below on Twitter/StockTwits 11.3.2019 showing that a bearish momentum price action breakout pattern has triggered sellers. A bearish momentum breakout pattern consists of 1) Temporary low visible on price chart together with a low below the 20 level on the stochastic indicator which registered on July 25/2019. 2) Price shows a visible retest of the moving average but does not close above it. 3) Price respects the moving average and reverses direction which then breaks below the registered low signalling bears to watch for selling opportunities.
EURCAD Weekly Chart February 12/2020 : Price continued to respect moving average and finally breaks lower.
EURCAD Daily Chart February 12/2020 : The Daily chart below shows more visible bearish market patterns and a clearer picture that the pair would move lower. I sold EURCAD on the break below the black channel breakout pattern at 1.4538 with stops at 1.4773 looking for 1.4168 target. Let’s see if the pair continues lower in the coming days and weeks.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
*** Always use proper risk/money management according to your account size ***
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