Welcome to our newest feature; Trend Line Analysis. Our professional market technician showcases intraday / swing trade setups on a broad spectrum of FX currency pairs. The most effective way to use the setup are:
▪ If indicated price zone holds; consider partial profit taking between 20-40 pips before aiming for the maximum listed target.
▪ If the price zone fails to hold; we likely to see price moving against us. Fail means; the candle closing higher or lower to indicated price zone.
We have an interest to set shorts up on the EURCAD ideally to T3 zone or 1.461X. This comes in as the possible top of the channel and would expect some holding and retraces off it.
CAD showed promise as of yesterday that it can try some lower side preferably to around 291X handle; but the falling oil prices are making it harder for the pair to make any headway and a constant weakness at the present is felt on all it’s crosses.
Oil shows a decent support to 41 handle and we can see some relief rally off there which subsequently would help CAD immensely and we can see some relief rallies on its crosses.
EUR on the hand has been enjoying the upstream rally on the back of the Yuan devaluation which caused major sell off on the US Dollar and along with its cross power; EUR was able to post 1.1214 high yesterday. The resistance to this level capped which then saw the fall out to 1.1080, the pair though recovered quickly back towards 1.1150. While another go to test the highs are still a possibility; nevertheless expect a decent resistance to it.
Hence; we look to see a possible move on EURCAD making way to test T3 and we like to enter shorts for an initial move to 453X with potential run to 4470-8X.
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