Trend Line Resistance Offers EURCAD Short Opportunity
The EURCAD is approaching trend line resistance offering a selling opportunity near 1.3550.
On a recent TV interview I was asked why the Euro has been holding up despite their sovereign debt crisis. My response was that if you strip out the USD, the Euro has been in a down trend against the other currencies like AUD, NZD and even the CAD.
With trend line resistance approaching on the EURCAD, this offers an opportunity to align our trade in the direction of the trend. Therefore, this allows us to sell the Euro-Zone risk.
(Created using FXCM’s Marketscope 2.0 charts)
To learn more about the importance of trend lines, constructing trend lines, how to use them to identify entries, watch this video from Las Vegas:
Using Trend Lines to Optimize Entries
Chart Reading 101
The Professional Trader’s Friend: Trends
---Written by Jeremy Wagner, Lead Trading Instructor, DailyFX Education
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.