EURCAD - Bullish entry for swing trade by DanV on TradingView.com
29 September 2014
Over the very long term it seems that EUR has been loosing ground against CAD as can be seen from this monthly chart of the par in that it is forming what appears to be a large falling wedge.
That said, we are in development of a large zigzag for Wave 4 and have near completion of the retracement. Note the following:
1. 50% Fib retracement of the move of the July 2012 low.
2. RSI back to 50 level - potential support.
3. In the proximity of previous resistance zone which should now offer support.
Within the range of 1.38 -1.40 zone where bottom could form, a long entry could be fine tuned using daily & H4 time frame to either look for confirmation or to ensure risk is acceptable for the position size and account capital.
Upside target could be 1.60 from where an equally juicy reversal trade could unfold with eventual target of 1.2 or lower to complete this large falling wedge.
I anticipate lot of opportunity to swing trade this pair. Shorter term trades could trade in the direction of the trend rather than taking counter trend moves for reduce risk and increase odds of being more profitable.
Therefore little bit of work on your part could yield lot of profit.
I will post a daily chart in the updates and comments showing more details