EURCAD
This image displays an hourly candlestick chart for the Euro/Canadian Dollar (EUR/CAD) currency pair from the OANDA brokerage, covering the period from late August to early October 2025.
Market Trend and Channel Analysis
The chart clearly shows the EUR/CAD pair is in a strong uptrend, moving within a well-defined ascending parallel channel.
Channel Boundaries: The pair has been consistently respecting the lower and upper boundaries (blue lines) of this channel, indicating a persistent bullish sentiment.
Mid-Channel Line: A dashed line runs through the center of the channel. This line often acts as an intermediate support or resistance level, with the price action moving between it and the main boundaries.
Key Price Levels and Indicators
Current Action
The price is currently near the upper boundary of the ascending channel. This often suggests the possibility of a temporary pullback or a decisive breakout attempt.
The price is also sitting just below a key resistance level marked by the red horizontal line at approximately 1.63902.
Support and Resistance
Immediate Resistance: 1.63902 (red line). A breakout above this level would confirm stronger momentum.
Immediate Support: The lower boundary of the red horizontal box, which aligns with the moving averages and the top of the price congestion area, around 1.63351 and 1.63692.
Previous Support/Congestion: A wider, shaded pink horizontal box around 1.61900 likely represents a previous zone of support and consolidation before the current leg up.
Moving Averages
The chart includes two Moving Averages (MAs), one in black and one in red, which appear to be the 50-period and 200-period MAs, respectively (common configurations).
The shorter-term (black) MA is consistently above the longer-term (red) MA, and both are sloping upward, which is a classic bullish signal (a "Golden Cross" on a larger timeframe or sustained positive MA alignment).
Crucially, the price action is trading above both moving averages, which are acting as dynamic support, reinforcing the uptrend.
Potential Trade Setup (Indicated Box)
The green and red boxes on the right side of the chart suggest a potential trade idea:
Entry/Breakout Zone: The price is hovering around the potential entry zone. A sustained move above the 1.63902 resistance and the channel's upper boundary would signal a breakout.
Target (Take Profit): The shaded green box (Take Profit level) is set near 1.65149, implying the expectation of continued upward momentum following a breakout.
Stop Loss: The shaded red box (Stop Loss level) is placed near 1.63323, just below the immediate support and moving averages, suggesting a strict exit if the upward momentum fails.
Conclusion
The EUR/CAD pair is in a strong upward channel. The immediate question for traders is whether the price will:
Breakout above the channel and the 1.63902 resistance to test higher levels (the scenario outlined by the trade boxes).
Pullback from the upper channel boundary towards the mid-channel line or the dynamic support provided by the moving averages.
The current price action is tight against resistance, suggesting an imminent move.
