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EUR/CAD: Bullish breakout, how far does it go?

EagleFX

EUR/CAD has been bullish in the daily chart. The chart shows that it produced a double bottom. At the second bounce, it produced a morning star, headed towards the North, and made a breakout at the neckline level. Yesterday’s candle came out as a bullish candle as well. Thus, intraday buyers are going to keep their eyes in the pair to go long and push the price towards the North further. Let us now have a look at three vital charts.

Chart 1 EUR/CAD Daily Chart


The price had several bounces around 1.52000. At the last bounce, it produced a morning star and headed towards the North. On its way, it made a breakout at 1.54365. Yesterday’s candle closed well above the level. Thus, intraday traders may go long above yesterday’s highest high. The price may find its next resistance around 1.58400. Ideally, daily chart traders may wait for the price to consolidate and produce a bullish reversal candle to go long in the pair.

Chart 2 EUR/CAD H4 Chart


The H4 chart shows that the price made a strong bullish move and traded above a significant level of resistance. The price had a rejection and produced a bearish inside bar. It has been heading towards the South to make a bearish correction. The level of 1.54600 may work as a level of support. If the level produces a bullish reversal candle, the buyers may go long in the pair and push the price towards the North. A breakout at the level of 1.55360 may push the price towards the North further with more bullish momentum. On the contrary, if the price breaches through the level of 1.54600, the price may find its next support around 1.54000.

Chart 3 EUR/CAD H1 Chart


The chart shows that the price has been bullish for a long time. At the last rejection, it produced a bearish engulfing candle and made a breakout at the last swing low. The level of 1.54900 may work as a level of support. If the level produces a bullish reversal candle, the buyers may go long in the pair and push the price towards the level of 1.55630. On the other hand, if the price breaches the level of 1.54900, the price may find its next support around the level of 1.54500.

The daily chart is bullish biased. The H4 and the H1 chart seem to offer long entries to the buyers soon. Considering these three charts, the pair may end up producing another bullish candle in the daily chart today.

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