EURCAD took a strong Bearish move on the H4 chart on the last Friday. The price broke an H4 up trending Trendline and then started having a correction. The price is near a significant level of Resistance at the moment. If the price is held by the current H4 candle and then it produces an H4 Bearish Engulfing candle and a breakout towards the downside, then selling the pair would get us some green pips with an excellent risk and reward ratio. Let us have a look at the H4 EURCAD chart.
EURCAD Price Action Analysis – 23rd July 2018
Have a look at those H4 Bearish candles and the correction. The level of 1.54245 is the level that has to be held and to produce that H4 Bearish Engulfing Candle. This is the level, where price had reacted heavily earlier. Thus, this level has all the potential to be the level of Resistance today. The level of 1.53955 has to be broken by that H4 Bearish Engulfing Candle though to take the short entry. Let us have a look at the summary of the trade…
- Sell Stop Order: 1.53955
- Stop Loss: 1.54245
- Take Profit: 1.53180
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
None of the currency of this pair has any high impact news event today. Thus, the signal could come at any time. However, the best time that the signal might come just after the next H4 candle finishes. I also assume that the pair would not take too long to hit the profit target if initial things go accordingly.
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