EURCAD Trading Setup

Sometimes the best trading setups are coming from the least expected instruments

The trading setup from last time did stop me out just before price reversed. The price went slightly lower than I expected, but this does not mean that the trading environment looks bearish. In fact, it looks quite bullish to me. The support zone is still holding and depending where you have placed your stop-losses, you might be still in a trade. If I was in a long trade, I would have probably considered maybe adding a smaller position. The intraday chart has presented me with such an opportunity.

EURCAD Trading Setup

Today’s trading idea is coming from an unconventional place- EURCAD. The last time I had a trading setup of this pair was back in 2015! It’s been a while… What I am looking at today is a major support area on the daily timeframe and a candlestick confirmation. The price action is showing me longer-term traders queuing up, loading long positions. I have been following the intraday activity and it was definitely quite bullish, too. Yesterday’s daily candle is a bearish rejection- bullish engulfing candle. Today’s candle is a bullish candle engulfing the previous two candles. I will be looking for a retracement towards 1.3920 before going long. My stop loss would be placed just under 1.3840. My price target is the level of 1.4100. My secondary price target is the level of 1.4300.

Happy Trading,

Colibri Trader

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