Talking Points
- GBPJPY Starts Week Breaking to Highs
- R4 Resistance Sits at 171.36
- Range Resistance Begins at 171.08
EURCAD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The EURCAD opened today’s trading residing between clear points of support and resistance. Resistance has been tested once, and has been defined as the R3 camarilla pivot at 1.4561. After a quick test of resistance price immediately dropped back down to key values of support. Range support for the EURCAD can be seen above at the S3 pivot near 1.45333. The distance between these two points have created a 58 pip trading range for today’s session. As long as price remains supported, reversal traders may begin to watch for a bounce in price back up towards resistance.
Traders should also be aware that the current move toward support may be a part of a bigger market reversal for the EURCAD. Price dropping below the S4 pivot, would indicate the creation of a lower daily low along with a change in market conditions. At this point, traders should consider concluding any range bound positions. As long as price remains under 1.4518 traders may then select with the markets current momentum and morning trend.
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---Written by Walker England, Trading Instructor
To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.
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Previous Market Setups:
FX Reversals: EURGBP Breaks Final Support
FX Reversals: EURUSD Morning Reversal Update
FX Reversals: AUDUSD Trading Range Update
FX Reversals: USDJPY Morning Breakout
FX Reversals: GBPJPY Begins Week at Highs
http://www.dailyfx.com/forex/education/trading_tips/chart_of_the_day/2014/08/11/FX-Reversals-USDCAD-Tests-Support.html?CMP=SFS-70160000000Nc3WAAS
