- The price has been in range on the H4 chart
- Horizontal level 1.47550 has been working as resistance
- Simple Moving Average 30 has been flat
- The pair trades within a horizontal channel on the H1 chart
EUR/CAD Choppy Price Action on the H4 Chart
EUR/CAD pair made a good bullish move upon finding its support around 1.44800. At its second bounce, it made a breakout at Simple Moving Average along with horizontal resistance at 1.46100. The breakout at the horizontal resistance was a neckline breakout. Thus, the buyers pushed the price towards the North. The price had a rejection at 1.47100. Then, it headed towards the North by producing a Flag Pattern. The price made a bearish breakout at Simple Moving Average 30. However, the sellers do not seem to be confident to sell off the pair and drive the price towards the South. The price action on the H4 chart has been choppy. A strong bearish move may attract the sellers to go short below 1.46600. On the other hand, if the price finds its support around 1.46600 and makes a bullish move, the buyers may look to go long above 1.47550.
The H1 Chart Trades within a Horizontal Channel
As expected, the H1 chart has been very choppy as well. The chart shows that the price gets caught within a horizontal channel. It had rejection at the channel’s resistance twice. As of writing, the pair trades right at the support of that channel. A bearish breakout followed by breakout confirmation may attract the sellers and drive the price towards the South. The price may find its next support around 1.46550.
On the upside, if the price makes a bullish breakout at the channel’s resistance, it may find its next resistance around 1.48000.
The H4 traders must wait for the price to take a direction. The H1 chart has been choppy, but it seems that the price has a bit more space towards the North than the South. In a nutshell, it is the pair that traders should be very patient to find entries with lucrative risk-reward.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn