EUR/CAD produced a long bullish candle yesterday. However, the H4 chart shows that the price consolidated around a level of resistance and produced a bearish engulfing candle. Thus, the H1 sellers may get an opportunity to go short in the pair. Let us now have a look at the H1- EUR/CAD chart.
Chart 1 EUR/CAD H1 Chart
The H1 chart shows that the price made a strong bearish move and made a breakout at the last swing low. As of writing, the last candle came out as a bullish inside bar closing within the level of 1.55630. It is a significant Fibonacci level of the last bearish wave. If the level works as a level of resistance and ends up producing a bearish reversal candle, the sellers may go short below the level of 1.55450.
Trade Summary:
Entry: Sell below 1.55450
Stop Loss: Above 1.55630
Take Profit 1: 1.55165
Take Profit 2: 1.54960
Take Profit 3: 1.54725