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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/Cxt86jl28N
  • The Japanese Yen fell for a third consecutive week with price testing resistance into June open. Here are the levels that matter on the $USDJPY weekly technical chart. Get your #currencies market update from @MBForex here: https://t.co/1QPXP0g7Ew https://t.co/WUtXHoRoQX
  • $USDZAR: A rally from here could be an important tell as to whether the level seen as support previously (17.76) will turn into a point of resistance for sellers to lean against. Get your $USDZAR technical analysis from @PaulRobinsonFX here:https://t.co/TNsQ4JJu6E https://t.co/I4yCjs2ja0
  • The US dollar continued to sell-off this week and the greenback’s future will be decided by commentary from the White House and not the Federal Reserve over the coming days and weeks. Get your #currencies market update from @nickcawley1 here: https://t.co/lpHneO3s2h https://t.co/bZ5klohLNd
  • #Gold prices have continued to push higher as expectations have built for global Central Banks to remain very loose and passive with monetary policy for the foreseeable future. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/h5tF3kAZfd https://t.co/VAYy9FGHcQ
  • Major investment bank models have touted USD selling, given the outperformance in US equities relative to its counterparts over the past month. How is this likely to impact the month-end rebalancing? Find out from @JMcQueenFX here:https://t.co/MtNrHmXZpD https://t.co/YvoHlUsdVr
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/X15k6b4ZyB
  • The month of May saw equities rise across the board. The #Dow Jones and #DAX 30 will look to hold above nearby support while the #Nasdaq 100 may look to attack all-time highs. Get your #equities market update from @PeterHanksFX here: https://t.co/dQxkG68R0I https://t.co/cgfcOs14qG
  • There is a dramatic departure between yield curve pricing for a recession and other measures of near-term growth; the Q2’20 Atlanta Fed GDPNow is extremely alarming.Get your market update from @CVecchioFX here: https://t.co/eMd3T8EwDO https://t.co/56oUP6we9U
  • The #DAX has now closed the gap from the beginning of March with the index breaking above 61.8% fib at 11592. Get your DAX market update from @JMcQueenFX here: https://t.co/wr67nkxc8z https://t.co/CkxPZn1v3t
Can the Short Term EURCAD Trend Continue?

Can the Short Term EURCAD Trend Continue?

2013-04-19 20:00:00
Walker England, Forex Trading Instructor
Share:

Article Summary: The EURCAD has advanced over 572 pips for the month of April. Today we will review market momentum and its potential for future scalping positions.

Finding currency pairs to scalp can be a difficult proposition. Traders normally look for pairs with strong trends, with enough market moment to push price in one specific direction. Today we will review how to identify a specific pair to trade using trend and momentum analysis. Let’s get started by look at an example using the EURCAD.

Below we can see a 4Hour chart of the EURCAD which will be used to help find our current market trend. For the month of April the EURCAD has already advanced as much as 572 pips. As the pair continues its advance, traders wanting to use the trend can continue to take new buy positions. However, before any new orders are put into play, traders will question if short term pricing is moving in the direction of the trend.

Learn Forex – EURCAD 4HR Trend

Can_the_Short_Term_EURCAD_Trend_Continue_body_Picture_2.png, Can the Short Term EURCAD Trend Continue?

(Created using FXCM’s Marketscope 2.0 charts)

EURCAD Building Blocks

After identifying the trend, a scalper’s next step is to identify short term momentum. This step is taken to avoid counter trend reversals all while identifying key technical levels for trading. Below we will find a 30 minute chart of the EURCAD. The graph has been divided into two separate compartments to isolate market momentum. The key to momentum analysis is to ensure that price for both blocks is heading in the same direction.

To begin our chart blocking, we need to identify a starting point on the graph. Block 1 has been created by identifying price movements from Sunday the 14th through Wednesday the 17th. Pictured below we can see during this time frame the EURCAD advanced over 208 pips. Block 2 also shows a continuation of our uptrend, as price again moved to a higher high at 1.3478. With both blocks creating higher highs this ensures that momentum is still heading in the direction of the primary trend.

Learn Forex – EURCAD Building Blocks

Can_the_Short_Term_EURCAD_Trend_Continue_body_Picture_1.png, Can the Short Term EURCAD Trend Continue?

(Created using FXCM’s Marketscope 2.0 charts)

With both building blocks confirming upward momentum in the direction of the trend, traders can look to continue scalping the EURCAD with the start of next week’s trading. One key level scalpers should monitor is the current the Block 2 low at 1.3351 displayed above. If this line of support collapses, traders should take this as a signal that our standing uptrend may be at an end

.

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list,CLICK HEREand enter in your email information

Are you looking for a scalping strategy for the FOREX market? Sign up for our free CCI trading course! CCI Training Course

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

DISCLOSURES

News & Analysis at your fingertips.