EURCAD Analysis

EURCAD is at an interesting point. As we see from the chart below, price has broken the down trend line and been trading in a shallow pullback (0.382) range. Should price break higher with a meaningful close above 1.41 we could expect considerable follow through to the upside.

Conversely, should price break lower, we may trade down to the bat outlined on the chart and test the broken trend line. This could be an interesting area for longs due to the proximity of the weekly 3SMA.

There is a weak QM and a bearish gartley in the range, so one might consider shorts in the 1.4070 area.

Personally, I will be on the sidelines with a preference to take the long around 1.3840 if we do see that level.