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EURCAD Determined to Retest 1.5370?

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

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Two weeks ago on April 16 I mentioned how I favored EURCAD shorts below 1.5690. The pair was coming off of ascending channel resistance at 1.6150 and looked poised to continue lower but not before a retest of 1.5690 as new resistance.

That retest occurred between the 23rd and 25th of April. The latter formed a bearish outside day, suggesting an influx of selling pressure in the area.

Since the April 13 low, the EURCAD has also carved an ascending channel. It’s evident on the daily time frame, but the 4-hour chart offers a much clearer picture. Given the recent declines from 1.6150, I’m labeling this a bearish continuation pattern.

At the moment, the pair has broken below channel support on a 4-hour closing basis. We’ll have to wait until 5 pm EST to see whether sellers can also close today’s session below support near 1.5550.

Remember, I use New York close charts where each 24-hour session closes at 5 pm EST.

If sellers can clear the 1.5550 support area on a daily closing basis, I’d expect sellers to defend the level as new resistance. The next key support comes in at 1.5370/80. A close below that would expose ascending channel support that extends from the 2017 low.

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EURCAD daily time frame

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12 comments
Praise says

thanks for that update. im grateful.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Anda says

But I still believe that it will drop further down

Reply
    Justin Bennett says

    Then we agree.

    Reply
      Tendayi says

      Hey Justin i have seen pairs like EUR/NOK,GBP/PLN,USD/PLN to name a few tend to be very “compacted”..by this i mean a very small distance on the chart can surprisingly cover 300+ pips on the daily and 4hr timeframe…They tend to demand more margin also even on the same stop size…..do you happen to trade these…???if Yes how do you tackle them…

      Thanx a lot for your wonderful work

      Reply
derrick says

should i place that trade now or i wait

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alphonsus says

Thanks for the update

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derrick says

thanks so much my eyes were on this pair for sometime

Reply
Ghulam Abbas says

Sir you are perfect trader……

Reply
shepherd tinshe chikowore says

Hi Justin. Traded GBPUSD and made $20. Thnks to you. Went long on usdjpy. Want do you think

Reply
Pierre Mifsud says

From the 4 hr it looks to be a bullish bat pattern. This pattern is still forming currently moving from C down where if the rules hold it should reach D at 1.4970 before it should ascend again

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