News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • *Dalilah Still in awe!
  • and Daliah Muhammad too, both broke the word record Unreal!
  • If you’re not watching the #Olympics you just missed an incredible performance by Sydney McLaughlin, one for the ages
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.47% Gold: 0.14% Oil - US Crude: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FJCwYfBqBn
  • The US Dollar seems to be losing its momentum against ASEAN currencies as of late. Could this be another top in USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/rVBKBuhhAb https://t.co/PSkSEjVnMC
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.51% 🇦🇺AUD: 0.12% 🇬🇧GBP: 0.06% 🇨🇦CAD: 0.03% 🇨🇭CHF: 0.02% 🇯🇵JPY: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Ph5lsHjmZL
  • RT @BrendanFaganFx: AUD/USD Analysis: Aussie Dollar Points Higher After Strong Chinese PMI Data $AUDUSD #Forex #Trading Link: https://t.c…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.63%, while traders in France 40 are at opposite extremes with 82.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FD0WVipVhk
  • RT @RiskReversal: Check out @GuyAdami and me on this week's @macrosetup brought to you by @IG_US with @DailyFX's @CVecchioFX. We discuss th…
  • Alibaba (9988 HK) plunged 3% after reporting a 5% YoY decline in net profit for Q2.
ECB Rate Decision Catapults EURCAD into Resistance Near 1.3055

ECB Rate Decision Catapults EURCAD into Resistance Near 1.3055

Jeremy Wagner, CEWA-M, Head of Education

Earlier this morning, the European Central Bank (ECB) came out with their monetary decision to hold their target rate steady at 1.0%. Traders took a few hours to digest the news, and then a short squeeze on the Euro took place as the single currency catapulted higher. Prices on the EURCAD are now near resistance offering an opportunity to enter this trade as a seller.

ECB Rate Decision Catapults EURCAD into Resistance Near 1.3055

The EURCAD has been in a downtrend for several weeks now. We first discussed this trend back on December 16, 2011. Then, on December 28, 2011, prices broke below long term support. This break accelerated the down trend and has produced in excess of 1,000 pip trend in about 45 days.

ECB Rate Decision Catapults EURCAD into Resistance Near 1.3055

Moving to a 2 hour intraday chart and using trend lines, we can see that prices are pushing up to our resistance line that has been in place since November 23, 2011. This resistance line may act like a ceiling and repel prices lower.

However, it is possible that prices could continue to push higher as well. To help us determine if prices will respect this resistance line, we will look for our slow stochastic oscillator to turn down. It is important to wait for your entry signal to trigger.

This was reviewed in detail in the Las Vegas Expo on timing trades with trend lines. Additional confirmation on the trade would be if we see a bearish candle formation occurring near this resistance line like a long wick to the upside.

Assuming this resistance line is respected, enter a sell trade when the slow stochastic crosses down. Place your stop loss just above the swing high. Place your take profit level at least twice the distance of your stop loss level in pips.

---Written by Jeremy Wagner, Lead Trading Instructor, DailyFX Education

To contact Jeremy, email jwagner@dailyfx.com. Follow me on Twitter at @JWagnerFXTrader.

To be added to Jeremy’s e-mail distribution list, send an email with the subject line “Distribution List” to jwagner@dailyfx.com.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES