EUR/CAD Testing Support: Pullback or Continuation?Alright traders, let’s break down the EUR/CAD 4H chart. The current price is around 1.50117, just above the 21 EMA at 1.49909. While we've been in a solid uptrend since mid-July, the price is now showing signs of a potential pullback, having tested the resistance level at 1.50350 and pulling back slightly.
Market Structure Analysis:
Current Trend: The market has been in an uptrend, but a pullback is currently underway.
Key Levels: Immediate support at 1.50008 and the 21 EMA at 1.49909. Resistance remains at 1.50350.
EMA Positioning: The price is still above the 21 EMA, indicating overall bullish momentum, but watch closely as the price approaches this support level.
Potential Scenarios:
Bullish Continuation:
Entry Point: Look for a strong bullish reversal candle off the 21 EMA or above 1.50008.
Stop-Loss: Place your stop-loss just below the 21 EMA at around 1.49750 to manage risk.
Take-Profit: Set your first take-profit level at 1.50350 and a second target at 1.51000 if the bullish momentum continues.
Bearish Pullback:
If the price breaks and closes below the 21 EMA and the support at 1.50008, it could signal a deeper pullback.
In this case, watch for the next support level around 1.49750 for potential buying opportunities or consider short positions targeting the lower support.
Given the current setup, I'm leaning towards monitoring the 21 EMA and 1.50008 support level closely. A strong bounce off these levels will confirm a continuation of the bullish trend, while a break below could indicate a deeper pullback. Stay sharp, manage your risk, and trade smart.
