Market NewsTechnical Analysis

EUR/CAD: A Bullish Flag Pattern Makes the Pair Sluggish

  • The pair has produced a Bullish Flag Pattern
  • The price stays above Simple Moving Average 30
  • The H1 chart consolidates after a bullish move
  • The H1 chart offers enough space for the price to travel towards the upside
EUR/CAD H4 Chart
EUR/CAD H4 Chart

EUR/CAD a Bullish Flag Pattern is in Play in the H4 Chart

The pair found its horizontal support at 1.44900 and made a good bullish move upon producing a double bottom. The price gets caught within a bullish flag. As of writing, the pair trades around flag’s resistance. Thus, it may get slightly bearish to find its support again. A strong bullish pattern at the flag’s support may make a breakout at the support resistance and push the price towards the North with good momentum. Simple Moving Average 30 has been working as a support as well. Thus, most probably the pair head towards the North and make a new higher high. The price may find its next resistance around 1.48700. On the other hand, if the H4 makes a bearish breakout at the channel’s support, the sellers may look to go short in the pair upon having breakout confirmation.

EUR/CAD H1 Chart
EUR/CAD H1 Chart

The H1 Chart Finds a Bullish Trend Line

The H1 chart shows that the price has been bullish by obeying a bullish trend line. At its second bounce, it made a strong bullish move. The price has been in consolidation for a while. The buyers may wait for the price to produce a bullish breakout at consolidation’s resistance to go long in the pair. If it comes down and produces a bullish reversal pattern at the trend line’s support, the buyers may go long and push the price towards the North as well. The H1 chart also suggests that the price has enough space to travel towards the upside. Thus, it may attract more buyers to buy the pair from the value area. The price may find its next resistance around 1.48700.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn

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