EURCAD Detailed Analysis - Long SetupYellow zones- critical zones based on the monthly/weekly timeframe
Red zones- critical zones based on the daily timeframe
Blue zones – critical zones based on the 4h timeframe
Orange zones – critical zones based on the 1h timeframe
According to last week’s EUR COT Report, we can see that it remains in a really strong “long” contract position. It is expected that the EUR keeps its upward momentum.
On the 14. July an attempt to break the daily critical near 1.55400 was made, but it wasn’t successful, and price got rejected. After it fell towards the monthly critical, massive buy pressure came in as predicted in our previous analysis.
Now we have a close above the daily critical zone and there are 2 possible scenarios:
1. Price falls to the daily critical near 1.55400, receives support and then continues its upward trend towards the monthly critical near 1.58500.
2. Price does a small correction towards the 1H critical zone near 1.54800, which is also a triple confirmation point. It aligns with the 0.5 Fibonacci level, the upper-trendline and with the 1H critical zone. After that it will go towards the monthly critical near 1.58500.
Happy trading!
