Could EURCAD Rally Another +300 Pips
Mon 7th August 2023 : Daily Currency Strength Analysis
Today we’re looking at Trading Setups in:
- EURCAD (Primary Focus Pair)
- NZDUSD (Covered In Video)
- AUDUSD (Covered In Video)
Our Interest (pending order)/Open Interest (live position)
| EURCAD Long | Price | Pips +/- | R/R (Max/Min) |
|---|---|---|---|
| Entry Price | 1.4650 | ||
| Stop Loss (Min) | 1.4550 | -100 pips | |
| Stop Loss (Max) | |||
| Profit 1 | 1.4850 | +150 pips | 1 : 2.00 |
| Profit 2 | 1.5050 | +300 pips | 1 : 4.00 |
Risk warning: Trading carries a high degree of risk. Read more here.
A new week begins in the forex markets, however we could see a slow couple of days before the volatility arrives.
High impact data releases aren’t scheduled until Wednesday so market participants may be keeping their powder dry until then.
One currency pair that stands out to us is EURCAD.
EUR features as the third strongest currency on both tables, and CAD is the second weakest on the day traders table.
This could see this forex pair trade higher if these conditions remain the same.
Looking at the price chart of this pair we can see the weekly closed as a strong bullish candle, after testing near last week’s low.
It also looks like the weekly chart could be forming a higher low, which suggests buyers could be getting prepared for a move higher.
Moving down to the H4 chart, we can see price has traded through a key trend line resistance, as well as a period of consolidation.
Applying the Fibonacci retracement tool from the swing low to current swing highs at 1.47547 we can see the 38.2 Fib retracement level holds confluence with the key support of 1.4650, with the 50 MA not far behind.
This level could be ideal for traders looking to be long in this marker, to get long.
Technical Observations:
- EUR is S3 on both tables and CAD is S2 on the day traders tables.
- Price closed as a strong bullish candle last week.
- If price remains above H4 50 MA it could signal further upside.
Todays 9am (BST) Forex Strength Vs Weakness Tables:
