EURCAD Intraday Strategy
This week several central banks are expected to announce their last monetary policy for 2017. Although the current expectations are for the Fed to hike rates on Wednesday the statements that will be issued by the central banks may have a significant impact on the market.
Although the European Central Bank (ECB) is not expected to hike the interest rate, it is possible for the central bank to hike the deposit rate. Regardless of whether the ECB hikes deposit rate or not the economic projections may affect the Euro against a basket of currencies.
EURCAD 4hr Chart
Please click on the chart to enlarge:
EURCAD 4hr Chart 10/12/17
EURCAD painted a classic cup-and-handle pattern on the 4hr chart. While the pattern is often used a resumption of the trend we found it to be fairly effective in reversals. EURCAD will require to post a 4hr close above 1.5145 to affirm further gains in the cross.
It is possible the price may then re-test 1.5145, which occurs in most scenarios but not all. The prior attempt to close above 1,5145 was unsuccessful and may not negate the potential entry once it is provided by the market. Although the objective of the reversal is 1.5355 we marked 1.5210 as the target for the cross.
From a technical angle it is better if the entry is provided within 24 hours rather than later this week. Should EURCAD range between 1.5077 – 1.5145 it may slowly dent the potential entry.
EURCAD is currently offering the best technical signal via intraday time frames. We have also analyzed the hourly charts of multiple currency pairs and found EURCAD potential entry to be the most appropriate. We will wait for Monday and may add a new intraday strategy to this page.
17/12/17 UPDATE: EURCAD posted a 4hr close above 1.5145. The couple of sessions that followed EURCAD breakout were unable to cling onto their gains (dodjis).
Please click on the chart to enlarge:
EURCAD 4hr Chart 17/12/17
The price then broke lower to test 1.5077 before correcting higher, reaching 1.5210.
AS THE OBJECTIVE OF THE STRATEGIES HAS BEEN MET THE ANALYSIS IS NOW ACCESSIBLE TO ALL TRADERS
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Last Updated on December 17, 2017