EUR/CAD: Quietness before a Strong Storm

• EUR/CAD trades around a massive support on the h4 chart.
• The H1 chart has been choppy trading within a triangle.
• Intraday minor charts are yet to find a direction.

EUR/CAD- Technical Analysis- H4 chart

The chart shows that the price reacted at the level of 1.45550 several times. As of writing, it trades around the level again. The simple moving average 30 has been working as a resistance. Thus, the sellers may wait for the price to make a breakout at the level followed by a breakout confirmation to go short in the pair.

On the other hand, if the price breaches the SMA 30 and confirms the breakout, the buyers may look to go long in the pair upon having bullish reversal signal. The price may find its resistance around 1.47000.

Price Action Analysis- H1 Chart

The chart shows that the pair made a bearish move earlier. Then, it had a bounce at the last swing low. It moved towards the North again and had another bounce at the same level. It shows that the pair trades within a triangle. The buyers may wait for the price to make a breach at the trend line’s resistance to go long in the pair. On the other hand, a breakout at the horizontal support may drive the price towards the South.

Both charts show that the pair is choppy. However, considering the H1 chart, it seems that the pair may offer entries soon with excellent risk-reward. The question remains which direction it is going to make its next breakout to. Traders are to find that out by being patient observing the price action closely.

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

Contact and follow Tareq on Twitter: @tareqfpn