Market NewsTechnical Analysis

EUR/CAD: A Bullish Trend Line Holds the Key

  • EUR/CAD looks bullish on the H4 chart.
  • The pair has been up trending by obeying a trend line on the chart.
  • The H1 chart has made a good bullish move, but has found a horizontal resistance.
  • Intraday minor charts look bullish.
EUR/CAD H4 Chart
EUR/CAD H4 Chart

EUR/CAD- Technical Analysis-H4 Chart

The chart shows that the price has been up trending by obeying a bullish trend line. It had several bounces at the trend line’s support. At the last bounce, it produced a bullish engulfing candle. It may attract the buyers to go long and push the price towards the North. The price may find its resistance around the last swing high. Most probably, the price may make a bullish breakout at the last swing high. In that case, the price may find its resistance around 1.47800.

On the contrary, if the pair makes a bearish move and breaches the trend line, the sellers may wait for the price to confirm the breakout followed by a bearish reversal pattern to go short in the pair. The price may find its support around 1.44600.

EUR/CAD H1 Chart
EUR/CAD H1 Chart

Price Action Analysis- H1 Chart

The chart suggests that the price has found its horizontal resistance at 1.45875. It reacted at this level earlier as well. As of writing, the chart is about to produce a bearish engulfing candle. If that happens, the sellers may be interested to sell off the pair and drive the price towards the last swing low. The support at 1.45450 looks strong as well. A bearish breakout at that level may generate more bearish pressure and drive the price towards the downside further.

If the price holds the price and produces a bullish reversal pattern, the buyers may go long and push the price towards the North.

Another scenario is, if the price consolidates and makes a bullish breakout at 1.45875, the buyers may push the price towards the North as well. In that case, the price may find its resistance around 1.46000.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News Contact and follow Tareq on Twitter: @tareqfpn

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