Ian Coleman - First 4 Trading
Ian Coleman of explains in a technical analysis of charts why he is trading EURCAD. Coleman is looking to sell EURCAD at 1.4370 with a stop at 1.4420. His targets are 1.4125 and 1.4000.
Short term
Trade view / 30 December 2014 at 14:19 GMT

New Year may ring in more EURCAD weakness

FX Trade Strategist /
Instrument: EURCAD
Price target:
Market price:

The EURCAD rally in the early part of December, driven in part by plunging oil prices, ended with the move below 1.4520. The past two weeks have seen EURCAD languish between the 61.8 and the 76.4% Fibonacci retracement levels of the December’s 1.3960-1.4640 range. A move below the 76.4% level suggests that a 100% retracement is likely. The December downtrend from the 1.4640 peak remains intact while trading below 1.4190.

Management and risk description

There are already a large number of EURCAD short positions that could act as a drag on additional gains. Oil prices could fall through support at $50.00/bbl, putting downward pressure on the Canadian dollar and putting the stop-loss in play. Trading in the new year may start off slow, failing to provide the impetus to drive EURCAD below the 76.4% Fibonacci support level.


Entry:  Sell ½ position of EURCAD at market (Currently 1.4130). Balance at 1.4180.

Stop: 1.4225.

Target: 1.4005.

Time horizon: 2 weeks.

Chart: EURCAD 30 minute with Fibonacci retracement shown
Source: Saxo Bank

Chart: EURCAD 1 hour with downtrend and stop loss noted
Source: Saxo Bank

Chart: EURCAD 4-hour with break of short term uptrend
Source: Saxo Bank

Chart: EURCAD 5-year daily with moving averages

Source: Saxo Bank

-- Edited by Kevin McIndoe

— Edited by

Non-independent investment research
This investment research has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Saxo Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. » Read more
marco123 marco123
Merry Christmas & Happy New Year 2015 Michael O'Neill
Michael O'Neill Michael O'Neill
Thank you, Marco123. Same to you and all the best for 2015.
donovan80 donovan80
This comment has been redacted


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