TradeCityPro | EURCAD Analysis Reaching the Daily Box Target

3 Dis

👋 Welcome to the TradeCityPro channel!
Let’s dive into the forex market and analyze this popular pair, outlining key triggers for trading this week.

🌍 Fundamental Overview

EURCAD reflects the economic interplay between the Eurozone and Canada, influenced by:

🇪🇺 Eurozone Fundamentals (EUR):
ECB Policies: The European Central Bank's monetary stance (hawkish or dovish) significantly impacts the Euro’s strength.

🇨🇦 Canadian Dollar Fundamentals (CAD):
Oil Prices: CAD is sensitive to oil fluctuations due to Canada’s major oil exports. Rising oil prices typically strengthen the CAD.

Geopolitical tensions, trade balances, and global risk sentiment often sway EURCAD. The Euro acts as a reserve currency, while the CAD is risk-sensitive.

🕒 4-Hour Time Frame

1.4888 is the critical resistance, marking the top of the daily box (1.4888–1.5171). After breaking this level, the pair hit its target at 1.4556, a significant support level. The rejection at this resistance highlights its importance.

The 1.4731 level, broken yesterday but reclaimed today, offers a potential trigger for entries.

📉 Short Position Trigger
clear short trigger exists below 1.4731. Breaking this support could lead to further downside, targeting 1.4556.

📈 Long Position Trigger
While momentum-driven long entries are possible if the RSI enters overbought, a more reliable entry comes from consolidating within the current range or forming higher highs and lows.

📝 Final Thoughts

This analysis reflects our opinions and is not financial advice.

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