Intraday Strategies: Technical Entry in EURCAD

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EURCAD Intraday Strategy

EURCAD is providing a fairly decent entry. Although we would have preferred a deeper downtrend the reversed Head-And-Shoulders (H&S) neckline was breached (1.5005) before the close on Friday.

EURCAD 4hr Chart

Please click on the chart to enlarge:

EURCAD 4hr Chart 13 September 2015

EURCAD 4hr Chart 13 September 2015

The real question is whether the price will re-test the breached neckline or simply resume the uptrend. By taking a trade at market price without a re-test will often mean the trader must be prepared to absorb a possible retracement within the stop loss order that is used. By the book the price may re-test the neckline (now acting as support) before correcting higher. Concentrated amount of stops within a tight region will often provide decent conditions for stop hunting.  We would therefore expect EURCAD reversal to remain valid as long as 1.4960 holds, which is the latter support.

It will be easier if EURCAD gaps lower at the opening of the Forex market on Sunday night and remain above 1.4960, which would constitute as a re-test. There are multiple targets for the reversed H&S. The objective of the reversal is 1.5300, however, we  prefer a more conservative target, which is 1.5112. We suspect there will be a short-lived spike in Euro Cad followed by corrective weakness, hence the usage of a more conservative target.

Moody’s credit rating agency upgraded Ireland’s L-T Government Bonds to positive towards the Friday close, which may have a positive effect on EUR pairs and crosses. Although this mat not be relevant to EURCAD technical analysis the Greek elections are likely to be the centre of attention this week. According to the latest polls the Syriza party has the lead.

Gold 15min Strategy

Although the Industrial Production data may have a significant impact on XAU/USD we are still attempting to provide a 15min strategy for the commodity.

XAU/USD 15min Chart

Please click on the chart to enlarge:

Gold 15min Chart 13 September 2015

Gold 15min Chart 13 September 2015

The price is painting a potential reversed Head-And-Shoulders (H&S) on the 15min chart. Resistance is noted at $1,108.50, supported by the 100 Moving Average (MA, in black). Although a re-test of the resistance may lead to corrective weakness in the precious metal, a more rewarding signal may be a re-test of $1,105, which is currently supported by the 21MA. A successful re-test of $1,105 may paint the right-hand shoulder of the reversal pattern. Price may then retrace back to $1,108.50 (H&S) neckline where a break above may pave the way for stronger gains towards $1,110.

The 15min strategy may not be relevant for the European session due to the economic data from China.

14/09/15 UPDATE: XAU/USD missed our target by approximately 50 cents.

Please click on the chart to enlarge:

Gold 15min Chart 14/09/15

Gold 15min Chart 14/09/15

You may see how the right-hand shoulder was painted which lead to  a moderate recovery in the commodity. EURCAD is trading at 1.5025 after re-testing the 1.5005 neckline as we highlighted in the strategy.  EURCAD posted a high of 1.5037 before retracing lower.

22/09/15 UPDATE: With a slight delay, we have issued en email to our subscribers when we noted EURCAD was held in a tight range above 1.4960. EURCAD initially retraced off the first support (approximately +20 pips) before re-testing 1.4960). The range indicated the strategy may be invalidated by the market. The range continued for some time until the price broke below 1.4960, invalidating our projection for the currency pair.

Intraday Strategies: Technical Entry in EURCAD

As EURCAD and XAU/USD strategies are no longer applicable this page can  now be accessed by all traders. Relevant strategies are restricted to members only. We have been providing trade alerts in the Forex market since May 2014.
Intraday Strategies: Technical Entry in EURCAD

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Intraday Strategies: Technical Entry in EURCAD

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Intraday Strategies: Technical Entry in EURCAD

Last Updated on September 22, 2015