FOREX Chart Of The Day: EURCAD TRADE NOW LIVE
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to go through EUR/CAD and why we look for the position long in this market.
What I really like to do is to follow the trend. The trend is our friend, and we want to be looking for those trend buying opportunities. And on a higher time frame, there are going to be trends within trends.
So, what you’ll see, typically, is if a weekly chart, for instance, was moving to the upside. So, what you’d see in between that on a daily time frame is a move to the upside or even on the retracement on a weekly. We’d get this downtrend scenario in between that. If you had a four-hour time-frame you’d see trends within that. You’d see little trends, there are downtrends within that, and what I like to do is marry up those trends together in order to look for positions in the market.
So, what we can see here, if I just got to the weekly time frame, is the fact that the market had rallied up the pulled back down, putting this high in here. Then, the market has broken out and formed a higher high above this one, just through there. What I was looking for is if the market was going to pull back, which it did. We saw this on the weekly, these bearish candlesticks suggesting that the market was going to pullback. It’s where it is going to pull back, and I always look for the market to retest previous structure highs whether it be a four-hour, whether it be a 15-minute or one hour. doesn’t matter.
If the market is making higher highs, I always anticipate that the market will pull back into that high before continuing to the upside. It will be the same if the market is going to move to the downside. You know, log here, for instance.
I want to see the market retest these lows before the market moves down, it’s the very same thing. I’m looking for the market to hit this level and push back to the upside. I want that weekly trend to continue, and we can see from last week that we had a really nice bullish close off of those previous highs. When I see that, that shows us that there’s a potential for the market trend to continue to the upside in the daily time-frame because the market was pulling back we can see this little downtrend. But what happened is, at the bottom of this downtrend, the market then fails to make any clear lower lows. I mean, what we get is this kind of double bottom false break out, a pattern where the market has broken below the low, close below the low, suggesting that the market is going to continue down. But the next day, it closes back up within that double bottom range.
So, once I saw that candlestick there, that was a sign that we could start seeing the price push to the upside. It also looks like a little bit of an inverse head and shoulders pattern. So, we’ll just clear that off. We can see that if I did something like this, and we went to the likes of, maybe, a four-hour time frame. We could see that inverse head and shoulders to look a lot clearer in this particular time frame.
So, we’re looking for the market here on EUR/CAD to push back up into these weekly highs in line with that weekly trend.
Now what we may see out of this, because it is a weekly trend, is for the market to push up for a couple of days, pullback, then continue to the upside, like how we saw here on that pullback. Obviously, I’m expecting the impulse to be a little bit stronger because it’s the impulse leg on a weekly. So, I’m expecting something a little bit more like this. But, the market could still trend up like so.
So, continue to look for those buying opportunities on EUR/CAD. Right now, the market is breaking and moving to the upside in line with the weekly trend.
I hope you enjoyed this video update and I’ll catch you in the next one.
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