In this article I will provide my view on the EUR/CAD. This is an interesting pair currently for trading with the FxTaTrader strategy.
EUR/CAD
The pair is clearly in an uptrend and it is gaining momentum. From a longer term perspective the pair has room to continue the uptrend. Around 1,5580 is a previous top from March 19, 2014. The following positions are placed for this pair after close of Monday US Session:
- As can be seen in the Currency Score chart in my previous article of this weekend the EUR has a score of 6 and the CAD a score of 1.
- In the current Ranking and Rating list of this weekend the pair has a rank of 5. This list is used as additional information besides the Currency score and the Technical Analysis charts.
- Besides the general information mentioned the outlook in the TA charts also makes this an attractive opportunity.
- When trading a pair with the CAD it is important to check the development of the United States Oil (NYSE:USO) charts. The Weekly chart is showing consolidation in a downtrend and the Daily chart seems to start the downtrend soon. As long as there are no surprised to the upside it remains interesting to go short on the CAD.
Ranking and rating list Week 39
Rank: 5
Rating: + +
Weekly Currency score: Up
Based on the currency score the pair looked interesting since the beginning of August. The EUR is an average currency from a longer term perspective. The CAD is a weak currency from a longer term perspective. With currently a Score difference of 5 and the EUR being better classified it is an interesting pair for taking positions in the coming week. The EUR is gaining a lot of momentum lately as can be seen in the chart below.
Monthly chart: Up
- On the monthly(context) chart the indicators are looking strong for going long.
- The Ichimoku is meeting all the conditions.
- The MACD is in positive area and gaining momentum.
- The Parabolic SAR is long and showing the preferred pattern of higher stop loss on opening of new long and short positions.
- Since the monthly chart is used to get the context how that pair is developing for the long term the indicators are looking fine because they are showing strength in the current uptrend.
Weekly chart: Up
- On the weekly(decision) chart the indicators are looking strong for going long.
- The Ichimoku is meeting all the conditions.
- The MACD is in positive area and gaining momentum.
- The Parabolic SAR is not long but it is showing the preferred pattern of higher stop loss on opening of new long and short positions.
Daily chart: Up
- On the daily(timing) chart the indicators are looking strong for going long.
- The Ichimoku is meeting all the conditions.
- The MACD is in positive area but consolidating.
- The Parabolic SAR is long and showing the preferred pattern of higher stop loss on opening of new long and short positions.
Total outlook: Up
If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week and don't forget to check my weekly Forex "Ranking and Rating list" and the "Currency Score".
DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.