Daily Price Action
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EURCAD: The Waiting Game Continues

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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 on this website.

On May 16 I wrote about how the EURCAD had broken below multi-year channel support. The level extends from the 2017 low and had supported prices during the January 2018 swing low and again between the 10th and 11th of May.

In that commentary, I also pointed out a descending channel. The pair was in the process of testing support at 1.5080 and did bounce from the area momentarily.

As you can see from the chart below, even though the EURCAD has continued to drift lower of late, that descending channel support is intact.

Another support level I pointed out in that May 16 commentary was 1.5000. You can see that there were multiple lows at this level between November and December of 2017. It also capped two advances in August of last year.

Since May 23, the EURCAD has caught a bid from the 1.5000 handle. Even yesterday’s session closed back above the level (using a New York close chart) after dropping below it by 80 pips.

Fast forward to today, and we can see that the pair is approaching descending channel resistance. At the moment, I have that area somewhere between 1.5200 and 1.5240. Of course, it depends on how aggressive buyers get over the next few sessions.

Given the May 16 breakdown and the descending channel which is still intact, I’m only interested in selling opportunities. In fact, I’ve been waiting for a retest of descending channel resistance to get short for the past two weeks.

Only a daily close at 5 pm EST above the 1.5200/40 would negate the bearish outlook. However, even then buyers would still need to deal with former ascending channel support near 1.5300.

Key support comes in at 1.5000 followed by 1.4730/40. If the recent price action is any indication and this descending channel remains intact, an eventual retest of the July and September 2017 lows at 1.4470 should not be ruled out.

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EURCAD channels on the daily time frame

Leave a Comment:

13 comments
adeel says

Great sir, May you live long. swing trading is a great way of learning.

Reply
Ben P says

More super content as usual, honestly can’t thank you enough.
A quick question if i may: I know you don’t pay attention to news but do you hold trades through major news such as NFP?

Thanks again.
Ben P

Reply
    Justin Bennett says

    Hi Ben, it depends on the circumstances. Is the trade in the money? If yes, how far? Where are support and resistance in relation to the most recent daily close? Is it a cross or a major? Etc.

    So am I opposed to it? No, but it does depend on several factors.

    Reply
      Ben P says

      Thanks for the reply mate. I’ll take that on board and make an assessment based on it rather than just outright closing before it.
      Thanks as ever, eternally in your debt!
      Ben

      Reply
        Justin Bennett says

        Cheers, Ben. My goal in most situations is to hold a position for a week or longer, so I’m usually forced to hold through multiple events. As long as your analysis is spot on, and your risk control is sound, a little volatility shouldn’t make much difference.

        Reply
          Ben P says

          Makes sense. Suppose that’s all part of using bigger TFs and holding for longer periods. the intraday noise doesn’t affect you/us.
          Thanks once again for replying, you’ve made a huge difference to my bottom line.
          Ben

          Reply
Noel says

I have nothing much to say Sir, however I’m blessed and honoured to be mentored by you. I wish to come and shake your hand. You are doing great job. Now I’m making money like crazy, and I used to loose like crazy. Thank my mentor.

Reply
    Justin Bennett says

    That’s great to hear, Noel. Well done!

    Thanks for sharing, and you’re very welcome.

    Reply
Med says

Hey Justin Bennett.
Thank you for you analysis and it’s great as always, i have a question please:
As beginner, is better to trade Swing trade?
I always decide to trade this but since i see the Trend starts go against me i close my position….
Thank you so much Teacher!

Reply
    Justin Bennett says

    You’re welcome. There is no universal “best” way to trade. You have to find the style that suits your personality.

    Reply
Bruce says

Hi Justin,

I have researched Forex and tried so many Brokers with significant investment for more than 10 years but none of them have made it so simple like you. All they require is paid services but you, you are incredible and amazing.

I purchased the Ultimate Forex Swing Trading Course whilst it was on special offer and this have greatly improved my trading with comfort.

You will definitely see me in your members area once I recoup my investments from my current broker.

You are amazing and blessed..

Reply
    Justin Bennett says

    Thank you for the kind words, Bruce. I greatly appreciate it and am glad to know you’re finding the course so helpful. Cheers.

    Reply
Nomiseb Immanuel says

Great analysis… You the best.

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