EURCAD has been in a bullish sphere since last week. The formation has formed in a bullish format creating higher highs and higher lows. The support level pivots at the level of 1.31020. With this support level, we will look at other technical factors to assist on our long position. Our profit target would be reasonable at the resistance level of the price at 1.3250, which is a 100 pips more or less. 

The descending trendline has been broken out for buys and has been validated by the price action. This price action has obtained the necessary formation of the candlesticks as a facto of moving upwards. After the trendline, we wait for the retracement, which the market is currently doing at the support level.

The golden retracement area of 75-78.6% is in confluence with the market structure of the support level. This confluence will build up the momentum for the market to continue moving up.

The EMA 50 is still bearish and has not been retested yet. In this setup, we will use the EMA 50 as a retest profit target area. We can close half position at the resistance level and the remaining we will and can totally liquidate at the retest of the EMA 50.

RSI is at 47. The oscillators needs to jump above the 50 level benchmark for the confluence with other technical factors. With this move up, market can start to move towards the over bought region where the market has window to be tapped.

Bullish trend on EURCAD

Jul 20 2022