Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
On April 9th I pointed out a key trend line support for EURCAD.
And this isn’t just any trend line.
The level dates back to September 2017 making it a twenty-month support level.
In most cases, I would be interested in buying from a level like this.
However, the EURCAD has been grinding lower since March of last year. Sellers got squeezed in December, but it’s been downhill ever since.
You can see how the pair has carved lower highs into this trend line since the March high from earlier this year.
That indicates that demand is beginning to dry up.
As such, I have no interest in buying EURCAD. I’m only interested in shorting the pair, but not until sellers can clear this trend line on a daily closing basis.
The “daily closing basis” refers to the New York 5 pm EST close.
These New York close charts are essential for trading price action.
Keep in mind that EURCAD is prone to bouncing as long as this 1.4950 area is intact.
But I also think a daily close below it could trigger an aggressive move lower.
That’s because EURCAD has been above this level for the last twenty months, so there are a lot of eyes on it.
Key horizontal support below the 1.4950 area comes in at the 2018 low of 1.4750.
A daily close below that would expose the mid to late 2017 lows near 1.4470.
I want to reiterate that this is not a sell at the moment, at least not for me. Sellers need to prove they can crack this trend line support first.
I’ll remain a spectator until that happens.