asferruzzi
Long

EURCAD trend trade opportunity

FX:EURCAD   Euro / Canadian Dollar
Pros:

Both countries forecast fundamentals are evenly matched therefore I'm not considering this to be a factor.

The Euro is appreciating across most other currencies whilst the Canadian dollar is mixed, therefore there is slight weight towards this pair to continue the uptrend.

From a technical perspective we have a bunch of positives. Price has pulled back and touched the lower channel support area which also happens to be the 61 fib level; price has crossed the 20 period moving average; and price has pulled back to the 50 RSI level. In an uptrend, the mid point of RSI (50) is in an indication of a support level and price often bounces off this level. This isn't a reliable indication if price is ranging or about to reverse.


A pin bar has also formed two days ago. If you drill down to the lower time frames, this shows a double bottom pattern, which is usually a bullish reversal indication. Some analysts may argue that this particular pin bar could be bearish because the sellers stopped the buyers from pushing price higher.

Cons:

Higher time frame shows a downtrend, therefore the current uptrend could be just a pullback on the higher time frame.


Sentiment: Given the above I feel there is more weight towards the uptrend continuing, I am bullish .

Comments

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