WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Forex: Ideas You Can Trade - EURCAD Multi-Year High As 1.53 Breached

Posted by Steven Hatzakis on Feb 21, 2014 10:25:00 AM

EURCAD: Level Not Reached Since Early December 2009, as Bullish Trend Builds

The daily candle chart below shows the price history of the Euro currency (EUR) versus the Canadian dollar (CAD), known as the EURCAD pair, and trading near 1.5286 after making a fresh multi-year high today at 1.5345.

Last time the pair traded at this high was back in early December 2009, and looking at the last time EURCAD was covered in the Ideas You Can Trade series the trend was noted as strikingly bullish with resistance near 1.5000 and an expected pullback that didnt happen as it was subsequently breached as the pair had since trended higher. 

In recent weeks resistance had built just under 1.5300 on a number of occasions with today's breakout above this level signaling a potentially very bullish continuation, whereas a pullback below 1.5300 could mean a false upside breakout and that resistance on this line is still valid, with a retreat following.

Below are examples of how to trade a bullish continuation a bearish reversal:

1.  BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1.5360 with a Limit to take profit @  1.5389 and a stop-loss  @ 1.5336 Risk/Reward Summary: Limit risk = +29 pips profit /(-24) Stop-loss risk = Gain to Loss ratio = 1.20

2.  BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1.5198 with a Limit to take profit @ 1.5139 and a stop-loss @ 1.5241 Risk/Reward Summary:   Limit risk = +59 pips profit / (-43) Stop-loss risk = Gain to Loss Ratio = 1.37

 

 Medium term daily candle chart:

eurcaddaily febuary 21 2014 note

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!