FeroxWealth
Long

EURCAD Potential Move to the Upside

FX:EURCAD   Euro Fx/Canadian Dollar
With EURCAD             testing the monthly support for the fourth time now and failing to move lower due to serious bullish momentum coming in as a result of the retest, it is clear that there is some strong buying power supporting the 1.46000 level. This buying power pushed price action right up to the resistance level of around 1.47200-1.47300 which is also the 200 EMA level. This caught my attention and I started watching this pair to see if price action would be able to break above this resistance level and above the 200 EMA this time around. Price action, as you can see, has been able to clearly break above the 1.47200-1.47300 resistance level with some good momentum. This break also signifies a cross above the 200 EMA which is a rather significant bullish signal, especially after failing to break above it about 3 times prior to this move. Also EURCAD             has had a week correlation to EURUSD             over the past month and a very week correlation over the past day, and with EURUSD             showing bearish signs this could be a good buying opportunity here.

Please note the following rules below for entry to the upside:
Price action remaining above the 200 EMA and the red horizontal rectangle
Price action breaking above the 1.47500 level of short term resistance to the upside and preferably closing above this level
Enter on bullish momentum above 1.47600
Profit whatever you can get, but the 1.48400 level is the target for this move to the upside
Stops at around 1.45900 to be protected by the monthly support but carries a larger risk (set size accordingly for the large risk) 1.46400 could be a stop for those who want to hold a tighter stop.

This trade will lose its potential if the first rule becomes no longer applicable. For example if bearish momentum pushes price action substantially below the 200 EMA and red horizontal rectangle .

You will find that my style of trading often holds a greater risk than reward, however the potential of price action moving in the favor of my position where profit can be liquidated and banked before price action moves against me is very high when the rules are followed.

If you find yourself liking my style of trading please feel free to follow me as I will post potential trades like this rather frequently.
Trade closed: target reached: final target reached :)
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