EURCAD Retests 2018 Trend Line

by Justin Bennett  · 

February 5, 2019

by Justin Bennett  · 

February 5, 2019

by Justin Bennett  · 

February 5, 2019

Yesterday I mentioned how CADJPY could come under pressure soon.

If it does, EURCAD could benefit from Canadian dollar weakness. It would be well timed too given how the pair is retesting a trend line I discussed last December.

You may recall the bullish break in early December 2018.

After a week of retesting former resistance as new support near 1.5100, EURCAD reached our 500 pip target at 1.5580.

Since that time, however, sellers have been in complete control.

EURCAD has nearly wiped out all of December’s gains. But that isn’t surprising given how volatile Canadian dollar crosses such as EURCAD can be.

Bullish price action from the 1.4970 area would suggest the pair is ready to move higher again.

Alternatively, a daily close below the 2018 trend line would indicate the opposite.

Go here to get instant access to the same “New York close” charts I use.

As for key resistance, I would keep an eye on the 1.5180 area followed by 1.5320.

I won’t trade EURCAD without bullish price action such as a pin bar. Without it, there’s no clear indication that buyers are ready to step in at 1.4970.

As a side note, the price action in 2019 has been relatively unfavorable in my opinion.

There haven’t been many quality opportunities thus far, so an extra dose of patience is required here.

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EURCAD key support area on the daily chart

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  1. I like your analysis Justin and being your student is in my plan for this year, but within April-July. .. keep up the good work Sir

  2. Thank you Justin for your kind support for us beginners, if is to wait for pin bar please tell me in which time ,cause I’m a bit confused ,thanks

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