Here is the breakdown of the daily time frame for EURCAD
which coincides well with my weekly outlook
). This pair has been making lower highs, and lower lows since April 2014. Recently, the pair has broken out of its channel, made a new higher high (taking out the most recent lower high), which signals trend reversal. In addition, it has been making lower lows. Having said this, it is safe to start looking on where to enter LONG.
There is a AB=CD
setup on the daily, price has moved down into .618 of the Daily A/B which lines up with the upper channel trend line
(acts as support now). There is a moving average crossover as well. I will be looking to enter long once I see a Counter Trend Line
(CTL) break on 4HR. Stops will be placed slightly below the 1.40 handle, and targets will be 1.27 and 1.618 of Daily A/B - giving an outstanding risk reward of 1:4.
Happy pipping, keep in mind its holiday week so markets will be slow.