Published On: Tue, Feb 14th, 2017

Opportunity seen in bullish Gartley for EURCAD

InstaForex

Background


With the US dollar in a choppy corrective cycle, we have been concentrating our efforts on crosses lately. EURCAD looks great for dip buying, but don’t go in too early. 

Monthly – Holding within an ending wedge formation. This pattern has an eventual bias to break to the upside. The measured move target would be 2.0714, just below the 261.8% extension level of 2.1097 (from 1.2149-1.5568). I struggle to hold onto trades for a week, let alone 20 years, but knowing the bias is good. November’s outside month offers an immediate downward bias in this timeframe.

Source: Saxo Bank

Weekly (one) – The sequence for trading is lower lows and highs, but we do have trendline support (from Q3 2012 and Q2 2015) at 1.3642.

Source: Saxo Bank 

Weekly (two) – The most important outlook. A move to 1.3680 would form a bullish Gartley pattern. The minimum target would be 1.5000, but we would see a base put in place. 

Source: Saxo Bank

Please do not jump into this trade early. I have no trigger or exhaustion count yet. Alarms have been set for what I hope will be a very decent risk/reward set-up. 

Correlation

USDCAD – Daily chart is a bullish ending wedge

Source: Saxo Bank

USDCAD – (intraday – two hours) – Fibonacci confluence area at 1.3020

Source: Saxo Bank

Management and risk description

Parameters

Entry: Buying EURCAD at 1.3680

Stop: 1.3500

Target: 1.5000

Time horizon: long-term set-up 

— Edited by John Acher

Non-independent investment research disclaimer applies. Read more

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