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EURCAD New Shorting Opportunity?

FX:EURCAD   Euro / Canadian Dollar
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The EURCAD has produced some nice swings for us in recent weeks. First came the 500 pip drop that commenced with a retest of former trend line support from the December 2015 low.

I ended up shorting the pair a few weeks ago based on the ascending channel that had developed on the 1-hour chart. The bullish engulfing day on April 13th prompted me to book profits and also triggered last week’s 340 pip rally.

Despite the recent aggressive move higher, buyers face substantial headwinds so long as the pair trades below 1.4600. It’s unknown at this point whether Thursday’s bearish pin bar is a hint of things to come.

I’ll stand aside for now, but my somewhat bearish outlook will remain intact so long as 1.4600 holds on a daily closing basis. A daily close below the 1.4100 area could exacerbate the decline that began on March 28th.

Keep in mind that with the first round of the French elections coming up on April 23rd, volatility is all but guaranteed to increase. As such, I’ll be on the sideline for the remainder of this week and will also use relatively small positions to scale in should a favorable setup materialize.

Have a great weekend !

Check the upside technical analysis .

Performed by analytical expert: Urban Stamcar
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