We’re keeping things simple with a textbook trend trade on EUR/CAD.
How high can EUR/CAD fly in the next trading sessions?
We’re checking out the pair’s 4-hour chart for clues:
EUR/CAD 4-Hour Forex Chart by TradingView
First, remember that directional biases and volatility conditions in trading are also driven by FUNDAMENTALS. If you lack a fundamental-based price outlook for EUR/CAD, it’s time to do some digging by checking out the forex calendar and stay updated on daily fundamental news!
If your research has pointed you to EUR/CAD extending its months-long uptrend, then you’ll want to take a closer look at EUR/CAD finding support from the 1.4900 psychological handle.
As you can see, 1.4900 lines up nicely with a bounce from a trend line support that’s been valid for weeks. In the 4-hour chart’s case, the psychological level is also near the Pivot Point (1.4890) line.
A few more bullish candlesticks may attract buying pressure as it ups the odds of EUR/CAD extending its uptrend.
In case of a clear bounce from 1.4900, EUR/CAD may receive enough support for a retest of the 1.5045 previous highs near the R1 (1.5050) Pivot Point line. The 1.5100 May highs may also serve as a target for longer-term bulls who believe the pair will retest its 2023 highs.
Think EUR/CAD’s bullish juice is running out?
If you’d rather prepare for EUR/CAD seeing a longer-term reversal, then you may consider selling below potential support zones. This means selling below the trend line, Pivot Point, S1 (1.4800) level, or even the 4-hour chart’s 100 SMA.
Whichever direction you end up trading, make sure to check out EUR/CAD’s average volatility so you can price in more realistic entry and exit targets.
Good luck and good trading this one!
