EURCAD Sell Signal (August 10th 2015)

EURCAD Sell Signal (August 10th 2015)

The EURCAD has rallied into its resistance area which is visible in light grey in the above H4 chart. This is the third attempt at a breakout above this level by the EURCAD currency pair. The first attempt was reversed down to the lower band of its Bollinger Band indicator. The second advance resulted in a lower high which was also reversed back to its lower band. Another reversal is expected as a result of the third attempt.

Forex traders may decide to realize floating trading profits inside of a solid resistance area and close long positions which may result in a profit taking sell-off. Price action is currently trading above of the upper band of its Bollinger Band indicator. A breakdown below the middle band is expected to further increase selling pressure in this currency pair from where the EURCAD will be able to sell-off into its support area marked in light blue.

Forex traders are recommended to seek short positions at 1.4455 and above which will position them to profit from a sell-off in the EURCAD. Conservative forex traders should wait for price action to break down below the middle band of its Bollinger Band Indicator as this would result in a change of momentum to bearish. A take profit target of 1.4000 has been selected for a potential trading profit of 455 pips.

Forex traders should protect this trade with a stop loss level at 1.4600 for a potential trading loss of 145 pips which will result in a Risk-Reward (RR) ratio of 3.14.


Short @ 1.4455

TP @ 1.4000

SL @ 1.4600

RR: 3.14

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