EUR/CAD - Pure Technical Analysis

I had no further comments on my core markets this AM since my posting last night. Instead, I looked to see what trading opportunities there are elsewhere.

I slapped my technical indicators on a number of currency pairs and came up with a EUR/CAD trade idea. We used bollinger Bands on a 2 hour candle chart, and I added two hand-drawn lines. The first (in red) was the upward trend that was broken (and therefore should become resistance on the way back up). The second (in blue) is a support level that saw pretty good buying a week ago. That level (approx. 1.5790) has held again overnight.

As a purely technical trade with no thought given to the fundamentals or market psychology, we would recommend a buy just below the present market price (current bid 1.5867). We will use a Stop Loss order below the support level of 1.5790 and our Target Level is right where the midline of our Bollinger Bands and our former support line (in red) meet at 1.5930

As you can see in the below image, our MACD indicator seems like it is poised to move higher and create a cross-over signaling increasing momentum in our direction.

Our trade Idea: buy Limit @ 1.5850 with a Stop Loss order at 1.5775 and a Take Profit Level of 1.5940

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