EURCAD has been in a relatively steep uptrend since August.
That’s especially true over the last month in which EURCAD has only had four red days out of the last nineteen.
So the trend is signaling that longs are favored until proven otherwise.
However, EURCAD is approaching a massive pivot that dates back to May 2021.
That level comes in right at 1.4620. The pair nearly tagged this level last week, but not quite.
You can see from the 4-hour chart below that EURCAD has formed a bull flag since topping out last week.
A break higher from this consolidation will most likely be drawn to that 1.4620 pivot.
But keep in mind that there isn’t a ton of room between channel resistance and that key horizontal. So timing will be critical.
Furthermore, expect thin trading conditions as we near the holidays.
That means choppy price action and fakeouts are more likely as liquidity dries up.
