EURCAD Technical Analysis – February 26, 2025Hello traders, this is Fuinvest, and today we’ll break down the EUR/CAD pair on the 4-hour timeframe, using a combination of Price Action and key indicators. Let’s get started!
1. Trend & Market Structure
Looking at the chart, EUR/CAD has made a strong breakout past its previous resistance levels and is currently trading around 1.5045. Earlier, price cleared all three key EMAs:
34 EMA (gray) – 1.4916
89 EMA (yellow) – 1.4893
200 EMA (red) – 1.4890
💡 Key Observations:
After consolidating around 1.4850 – 1.4900, price exploded upward with high momentum and strong volume.
The 34 EMA has crossed above the 89 EMA, signaling potential bullish continuation.
A decisive break above the 200 EMA could indicate a trend shift from bearish to bullish.
2. Key Support & Resistance Levels
📍 Support Zones:
1.4916 – 1.4930 (34 & 89 EMA support zone) → A key area to watch if price pulls back.
1.4890 (200 EMA support) → If price retests and holds, the bullish trend remains intact.
📍 Resistance Zones:
1.5050 – 1.5070 → Current price region; a key test for bulls.
1.5100 – 1.5150 → If this breaks, expect further upside movement.
3. Price Action & Key Insights
Strong breakout above the 200 EMA with high volume → Bulls are in control.
Bullish Marubozu candle indicates strong buying pressure.
Increased trading volume during the breakout → Likely institutional interest.
💡 What this means:
If price stays above the 34 & 89 EMA, expect continued bullish momentum.
If price rejects 1.5050 and forms a reversal pattern, we may see a short-term pullback.
4. Suggested Trading Strategies
✅ Trend-Following Buy Setup (Higher Probability)
🔹 Entry: Look for a pullback to 1.4916 – 1.4930 with a bullish confirmation.
🔹 Stop Loss: Below 1.4890 (under 200 EMA).
🔹 Target 1: 1.5050 – 1.5070.
🔹 Target 2: 1.5100 – 1.5150.
📌 Confirmation Needed: Bullish candlestick formation or price action indicating strong buyer interest.
❌ Short-Term Countertrend Sell Setup (Riskier Play)
🔹 Entry: If price struggles at 1.5050 – 1.5070 and forms a bearish reversal pattern.
🔹 Stop Loss: Above 1.5080 to avoid stop hunts.
🔹 Target: 1.4930 (89 EMA, dynamic support).
📌 Caution: This is a countertrend trade and carries higher risk. Execute only if clear bearish signals emerge.
5. Conclusion & Action Plan
🔹 The bullish breakout above the 200 EMA suggests a potential trend shift.
🔹 If price holds above 1.4930 – 1.4950, expect continuation toward 1.5100 – 1.5150.
🔹 A pullback to the 34 or 89 EMA could offer a strong buying opportunity.
🔹 If price fails at 1.5050, watch for possible bearish rejection signals.
💡 Final Advice: Don’t trade on emotions! Always have a clear risk management plan and wait for market confirmation before entering a trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.