EURCAD bullish bounce - possible BUY

2020年5月11日

EURCAD is bouncing for a third time from liquidity pool at 0.50fib and confluence level supported by daily 100ema. Starting this week we have risk off tone benefiting safe havens more than risk and commodity currencies. 1.51 area is great support and order block. Nopthing changed much fundamentally, and EUR is still much vulnerable, but money flows tend to support falling currencies inside indecisive sideways market. This pair is interesting since it moves rapidly and has huge volatility moving on average 200 pips approx by daily measure.

We still need to confirm bull breakout on 1h and higher timeframes which means this move is NOT CONFIRMED YET! But this gives us an edge over then market knowing sentiment is supporting possible retracement from last selloff. Therefore we can prepare our entries and wait perfect moment to enter.

PATTERNS
Looking from 4h lows we have double bottom pattern with 4h bullish engulfing candle pattern. On 1h we have hammer candle+ breakout of last swing high and new higher high.

POSSIBILITIES:
More than 100 pips are on the table for bulls to get decent retracement towards the nearest major swing point (1.53 area of liquidity) where profit taking might occur along with new sell entries. Until then I think it's good r/r to enter the market with low/medium risk.