EURCAD Short Opportunity on Tap?

by Justin Bennett  · 

December 18, 2019

by Justin Bennett  · 

December 18, 2019

by Justin Bennett  · 

December 18, 2019


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?

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EURCAD channels on the daily time frame

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