EUR/CAD Consolidation Watch: Ready for a Breakout!Hey traders, here’s the scoop on EUR/CAD:
⚠️ EUR/CAD is currently showing signs of consolidation after a recent bullish move.
On the 4-hour time frame, we can see that the market is trading within a well-defined range. Here’s the breakdown:
✅ Bullish Scenario:
Entry: Look for a strong breakout above the resistance level at 1.47121. This level has been tested multiple times and a breakout here could indicate a continuation of the bullish trend.
Stop Loss: Place your stop loss just below the recent swing low at around 1.46790 to protect against false breakouts.
Target 1: The first profit target can be set at 1.47487, offering a reasonable risk-reward from the entry point.
Target 2: If momentum continues, look for an extended target around 1.47774.
❌ Bearish Scenario:
Entry: If the price fails to break above 1.47121 and shows signs of reversal, consider entering a short position.
Stop Loss: Place your stop loss just above the resistance level at around 1.47200.
Target 1: The first profit target can be set at the support level of 1.46790.
Target 2: If bearish momentum is strong, look for an extended target around 1.46400.
Key Indicators:
The 21 EMA (yellow line) is acting as dynamic support. A break below this could be an early sign of a bearish move.
The 200 EMA (blue line) is far below the current price, indicating a strong bullish trend overall.
Monitor price action closely near these critical levels for any signs of breakout or reversal, and as always, adjust your strategy based on real-time market conditions. Let’s catch these moves and trade smart! 📈💼
