Daily Price Action
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EURCAD: Recap and Road Ahead

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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.

We’ve been tracking several head and shoulders patterns over the last few weeks. First was the GBPCAD that confirmed during the July 26th session. The pair is currently down more than 400 pips since that break.

In fact, if you go back to the June 22nd bearish pin bar, the GBPCAD has declined by nearly 1,000 pips. That was the first mention of the topping formation.

Then there’s the GBPAUD. I pointed this one out on Monday, and the pair confirmed the 1,200 pip reversal pattern just a few hours later. You’ll also notice that the pound cross just retested former neckline support as new resistance.

The EURAUD is another cross that appears to be setting up for a massive reversal. Although the pair is lagging behind its pound counterpart, sellers just defended the 1.5700/20 resistance area I discussed two days ago.

As you can see, there has been no shortage of big moves lately. And not just in terms of pips, but the implications of these confirmed patterns cannot be understated.

Another pair I’ve had on my radar for some time now is the EURCAD. Apart from a EURUSD short I put on last Friday at 1.1600, the EURCAD is the only pair I’ve traded since late June.

The first entry came back on June 25th at 1.5580 which I announced in the member’s area. I’ve since added to the position at 1.5300 and again this past Wednesday following the rejection from the confluence of resistance at 1.5150.

But if you’re thinking the EURCAD has run its course, you may want to reconsider. A view of the price action since last November shows a pattern similar to that on the GBPCAD. No surprise there given their similarities.

If this is indeed a head and shoulders reversal, it could set the pair on a crash course to the 2016 and 2017 lows near 1.3800.

Now, it’s important to keep in mind that even if the pair does move that far south, it won’t be a smooth ride. There are bound to be several bumps along the way including but not limited to the 1.4740 area and especially the 1.4500 handle.

It also won’t be quick. Even a move to 1.4500 will likely take another month or two to play out, so you can imagine how long it might take for sellers to reach 1.3800.

For now, it’s going to take a daily close (New York 5 pm EST) below neckline support at 1.4960/70. Without a close below this area, the head and shoulders reversal will have to wait.

As always, there are no guarantees. The above does not mean the EURCAD will drop to 1.3800, 1.4500 or even 1.4740. As traders, the best we can do is determine what’s probable and then establish and follow a game plan to take advantage of the outcome.

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EURCAD head and shoulders pattern

Leave a Comment:

23 comments
Charles says

Thanks so much for this …you actually got good eyes…am gonna been eating for this this again

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    Justin Bennett says

    You’re welcome.

    Reply
Paul says

Hi Justin, in case of this head and shoulder pattern, do you often see confirmation by a candle like pinbar or engulfing candle?

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    Justin Bennett says

    No, not necessarily.

    Reply
Erwan says

Thanks alot…im still in up&down conditions😔

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    Justin Bennett says

    You’re welcome.

    Reply
obbiettivo says

Grazie Justin, da quando ho iniziato a studiare le tue tecniche,semplici,duplicabili,chiare e redditizie e per la prima volta sto vincendo!!!!!
Fare trading ora è rilassante. Ho fatto piu soldi in queste ultime 2 settimane che gli anni passati (in effetti ho realizzato il 53% del capitale)
Sono orgoglioso di essere un membro a vita!
Grazie Grazie
Ciao

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Leonardo says

Justin you are the best,now I understand.

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    Justin Bennett says

    Cheers, Leonardo.

    Reply
Yasser says

Thanks master

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    Justin Bennett says

    My pleasure.

    Reply
Raymond says

I’m few days new here but I have to say I love how u break down everything

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    Justin Bennett says

    Hi Raymond, welcome to the site. Glad to hear you’re enjoying it.

    Reply
Evans says

Mr. Justin, how do I become a member of your movement.

Reply
    Justin Bennett says

    Hi Evans, you can join at the end of the webinar here:

    https://dailypriceaction.com

    You can also use the contact form on the site, and I can send you a direct link.

    Reply
Marshal says

Boss Justin, you are the best, am wondering how you always getting it right all the time am joining you soon so i can be like you some day, well done sir..

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    Justin Bennett says

    Cheers. I’m certainly not right all the time. I have great months, good months, and not so good months.

    The key is to avoid the terrible months and make sure the good and great months outpace the not so good months.

    Reply
Pierre Mifsud says

Well written Justin as always! For the EURCAD the weekly chart shows that previously there was another head and shoulder with similar characteristics as the current one. That span between roughly June 2015 till February 2017…the current one seems to be the mirror image of its previous one though there is no prediction of how long it can take to reach the 1.38-1.41 handle

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chua anan says

I have today become one of members in this group. I like your analysis it does give a lot of helps

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Roy says

Thanks coach.

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Taaiteiti says

Thank you Sir

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Christoper Alvin says

Hi justin, do you trade xauusd?

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Joel says

terrific stuff Justin, Ima place my first TP at the Gap.

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