EURCAD – SHORT – 26th April 2018
Our analysis always starts on the daily chart and for a currency pair to make it onto the watch list we first need to see a set up that gives a bias for the following days session. In this case, after a sustained move to the downside, we eventually has a pullback to the 50EMA which was then rejected with a bearish outside bar.
After establishing our bias we monitored the hourly time frame for an entry. Price action on the H1 was showing MACD divergence and a break of the 50EMA so we placed an entry at the daily pivot point for a short trade.
Price reacted to the daily pivot almost to the pip and sold off. Because of the clean price action on the daily chart we ran the trade to the prior lows and eventually took profit for a 4.05R return.