Daily Price Action
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EURCAD Consolidation to Offer Breakout Opportunity

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use.

To say the EURCAD has been uneventful of late would be an understatement. Since closing below the 1.5440 area on June 27th, the Euro cross has gone nowhere fast.

For the last 19 trading days, prices have been contained by a 125 pip range. Support is found at 1.5315 with resistance coming in between 1.5440.

However, if we strip away the horizontal levels, we can see that a pattern has started to develop since the July 4th low.

Notice that this short-term ascending channel comes on the back of an aggressive 300 pip selloff in late June. And if we view the last 19 days as corrective price action, it would suggest that the next impulsive move will be lower.

That’s the view I’m going with for now. There’s no guarantee it will happen, but given the break below the larger ascending channel in late June and the recent sideways price action, it seems this latest ascending formation is a continuation pattern.

So does that mean you should sell the EURCAD today?

Probably not. Of course, it’s your decision, but until the pair closes below the 1.5315 area, there’s too much guesswork involved to justify an entry in my opinion.

I remain short from the June 22nd retest of ascending channel resistance at 1.5580. I posted this entry in the member’s area shortly after I entered last month.

I’m open to the idea of adding to the position, but not until sellers force a close below 1.5315. Until that time the EURCAD is range bound.

A close below 1.5315 would expose 1.5150 followed by the 1.5000 handle. Alternatively, a close above the short-term ascending channel resistance near 1.5480 would turn our attention higher toward the June highs at 1.5580.

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EURCAD ascending channels

Leave a Comment:

22 comments
David Balaj says

Justin do you ever trade or you just do analyses only ? I have never seen any of your charts with a position opened.

Reply
    Justin Bennett says

    David, I mentioned above that I’m still short the EURCAD from 1.5580. I also posted my entry in the member’s area shortly after I took the position on June 22.

    As for positions on charts, I don’t use my personal account to post charts on a public website such as this.

    Reply
      Bhekabakubo says

      Lol David, JB is a professional forex trader. He does not post about his Lot size, about his personal lifestyle. Following him is worth it, I have learned lot of stuff and I am still learning.

      Reply
Corleone says

On the higher time frame. I believe it’s at or below a 50% retracement. I have been in that pair since last week also. So, How did you know when an actual correction is complete and how do you know where you are in the sequence of events that will lead to a move towards the desired area? Also is there a way to hedge with binary options if you are expecting a breakout. Thanks for your time and your unshelfish contribution in an attempt to help traders with little to no experience trading while Still on demo.

Reply
Valdas says

I have advise to you Justin,don’t make this analysis anymore,because is
so ridiculous,you confusing some newbies.I think you don’t understand Charts,i see you want to predict market ,you don’t see Chart movements correctly and you making a lot mistakes.How you can take money,from poor people, if you are not professional trader?

Reply
    Justin Bennett says

    Hi Valdas, the vast majority of people who follow this website will disagree with you. As for getting it wrong, I’ve never claimed that I always get it right. In fact, I’m very open about having some months where I’m only “right” 50% to 60% of the time. That’s how trading goes sometimes.

    That said, I’m not entirely sure what has you upset. Most of the commentary I’ve released lately has worked out quite well aside from the markets that are moving sideways of course.

    Lastly, I don’t take money from anyone. I offer help to those who want it. I don’t force anyone to become a member, and I provide a ton of free content. I know some traders that have followed me for free for the last four years, and I have no issues with that.

    Reply
      Valdas says

      Ok, sorry,Justin,not my buisiness to judge you.I was upset on yours analysis,but i change my mind and wish best to you and good luck to you!

      Reply
        John says

        you are not serious valdas. you cant put blame on someone for your misfortune. you are upset but we dont wanna know what you upset on man. look for a solution for your life and move close to God if that is what you need.

        Reply
      Valdas says

      Ok, i can help you to improve your trading system for free, from 60 % to 85%,you will be “right”.Now you miss crucial trading tools on yours system.Using this tools, you will see better trend and chances for enter and exit. And ,finaly,you will get more followers 🙂

      Reply
      John says

      sir Justin thanks for your good response. people hate it when people make it. THat is Life.

      Reply
        Emuobo Agbahovbe says

        In 6montjs with Justin’s free website I have learnt more than I ever did in the 11 years since j started forex. This simple price action based charting is very easy to learn and I’m amazed at how clearly I see the markets now. In just one month of following Justin’s price action charts, I am up 1120 pips.(June 23rd 2018-23rd Julky 2018). This has boosted my confidence that I can become a successful full time trader.

        Reply
      Dusit Buddawong says

      Do not pay attention to these people. Continue your work I think many people take advantage of this.

      Reply
        Justin Bennett says

        I never focus on the naysayers. I wouldn’t be very good at my job if I did.

        Reply
    John says

    in my own view valdas. you just blowing false alarm. idk who dafuk you are but this life is cool dont vex on things you dont mean to say b*t*h. If you can spot someone mistakes then correct it in order word if you saying what sir justin is posting is not right then make it right. that is my advice for you. even dailyfx.com daily predictions sometimes goes wrong.

    Reply
      Roy says

      one is never “right” about the forex market, there is only probabilities, will the trade you are in work out or not?
      Coach has helped thousands of traders come to terms with the reality of placing a trade.

      Reply
        Mark says

        Everything is simply,if you win , you are right, if you lose,
        you are looser

        Reply
irtaza says

Dear Justin,

The pair has broken 1.5315, would you consider shorting now or waiting for the daily close?

Reply
    Sera says

    Hi Justin, should we wait for a retest of 1.53150?

    Reply
jerry says

don’t stop posting these analyses sir, we learn a lot

Reply
chua anan says

Sir Justin, first of all, I appreciate what you have been doing for this community. I learn a lot from your comments. There are people who instead of giving constructive ideas, like to give negative words. so we dont have to focus on them. Well done Sir

Reply
Phethile Lubisi says

your analysis is spot on. thank you for sharing this knowledge with us

Reply
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