EURCAD BREAK RETEST CONTINUATION POTENTIAL TRADE TO 1.51500
Evening from the UK. Let's talk Trend lines. Hopefully you all use trend lines within your analysis but on this occasion we have a descending trendily break. As you can see we have had a good 3/4 swing highs where price action has touched the top trendily found resistance and continued the bearish leg. This Bear leg could now become exhausted which may lead to a trend reversal to the upside with a trend line break.
Now theres 2 things to consider when we get a TL break. 1 False breakouts, where we have a break and price close back within the channel. 2.Break Retest of the Trend line and continuation to the direction the price has broke towards. Now at this moment in time is crucial as it looks like we have had a breakout of 40pips and a retest. If we have price going into the asia session/wednesday remain above the trend line and moving averages as a resistance with the help of some bullish/reversal candles we have a bull trade on our hands.
You can also also have a Fibonacci extension from the recent swing low to swing high and yo will notice where price is retesting a 38% fib retracement level is also being respected. Currently all great signs for bullish momentum. If price begins to close within the channel. I will have to rethink this entry. It has been a very bearish year so far for this pair, can the Bulls take control?
Now theres 2 things to consider when we get a TL break. 1 False breakouts, where we have a break and price close back within the channel. 2.Break Retest of the Trend line and continuation to the direction the price has broke towards. Now at this moment in time is crucial as it looks like we have had a breakout of 40pips and a retest. If we have price going into the asia session/wednesday remain above the trend line and moving averages as a resistance with the help of some bullish/reversal candles we have a bull trade on our hands.
You can also also have a Fibonacci extension from the recent swing low to swing high and yo will notice where price is retesting a 38% fib retracement level is also being respected. Currently all great signs for bullish momentum. If price begins to close within the channel. I will have to rethink this entry. It has been a very bearish year so far for this pair, can the Bulls take control?