Daily Price Action
Shares

EURCAD Short Opportunity on Tap?

Shares

EURCAD has been choppy and indecisive for several months.

The pair has managed to move just 350 pips since carving the year-to-date low on October 1.

Notice all the back and forth price action since that time.

That indecision has made the EURCAD a difficult pair to trade.

But nothing lasts forever, and I often find that the best opportunities materialize on the back of weeks or months of consolidation.

One such opportunity could materialize via the descending channel below.

Notice how EURCAD recently came into channel resistance and has even carved several bearish pin bars on the weekly time frame.

We’re also starting to see lower highs since November 21.

EURCAD weekly channel and pin bars

But despite the channel above and the weekly pin bars, the EURCAD is still a sideways market.

So what could tip the scale in favor of shorts?

As you might expect, the recent choppy price action has formed another channel on the way up, this time an ascending one.

We can use that formation to spot weakness and perhaps even a short setup.

Of course, we first need to see sellers secure a daily close below support.

That support level is around 1.4620 as of today’s price.

If we do see EURCAD close below that 1.4620 area, a move toward the year-to-date lows at 1.4430 would not be a surprise.

On the other hand, a daily close above descending channel resistance near 1.4700 could turn the pair higher.

All in all, though, I would prefer to sell EURCAD given the downtrend that has been in place since March of last year.

Want to watch the EURCAD video I just released in the member’s area?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in December!

EURCAD channels on the daily time frame

Leave a Comment:

6 comments
Justin Bennett says

Now You Can Get Access to the Same Professional Forex Charts I Use!

Get Access Now to start using correct five-day charts.

These charts give you five 24-hour sessions each week and are the same ones I use to trade the Forex market. Other non-professional charts that provide six-day weeks can produce false signals.

Download the Platform Today and get my 6-step swing trading cheat sheet as a free bonus.

Reply
Gabriel says

Eurcad on fire thanks to your analysis. Is it possible to provide the following
enter point
Take profit
Stop loss

Reply
Reginald Mathai says

Mr. J. Bennett, I am following your free daily set ups, been doing that since 2018. Bro you been of great help to me, your magic works, keep up the good work. And I am yet to go far with you. Peace.

Reply
Gideon says

EUR/CAD playing out great so far. Thanks man. You have helped me see the markets in a different light. I have been trading for nearly 7 years, yet I have learned so much valuables strategies from you. I even take cues from the seemingly random things you say. Your insights on the market is excellent. My trading results has certainly improved much these past few months. Looking forward to a brighter 2020. And ultimately becoming a full member of your service. I salute….

Reply
Add Your Reply