EURCAD is currently trading around 1.5600 and is consolidating within a textbook ascending triangle pattern on the daily timeframe. This setup signals a strong bullish bias as the pair continues to form higher lows, tightening under a key horizontal resistance zone between 1.5730 and 1.5770. Price is respecting the ascending trendline very well, indicating buyer strength. A breakout above this resistance zone could open the doors for a clean rally toward the 1.6400 psychological level, offering a strong risk-to-reward opportunity.
From a fundamental standpoint, the euro is gaining traction as recent Eurozone economic indicators suggest improving sentiment and a potential shift in ECB tone toward neutral. Meanwhile, the Canadian dollar remains pressured by falling crude oil prices and softening domestic data, including disappointing employment numbers this week. This divergence in fundamentals aligns well with the bullish technical structure for EURCAD, creating a high-probability scenario for buyers.
Looking ahead, a confirmed breakout above 1.5770 with volume could trigger a strong bullish impulse. The measured move from the triangle’s base supports a projection toward the 1.6400 area, making this setup attractive for swing traders aiming to ride the next leg higher. Risk should remain controlled below 1.5440, where the ascending structure would be invalidated.
I’m closely monitoring the price action near the breakout zone. Patience is key, but once we see bullish momentum pushing through the resistance, this trade setup has the potential to deliver a solid upside run. EURCAD remains one of my top bullish forex plays going into mid-May.
From a fundamental standpoint, the euro is gaining traction as recent Eurozone economic indicators suggest improving sentiment and a potential shift in ECB tone toward neutral. Meanwhile, the Canadian dollar remains pressured by falling crude oil prices and softening domestic data, including disappointing employment numbers this week. This divergence in fundamentals aligns well with the bullish technical structure for EURCAD, creating a high-probability scenario for buyers.
Looking ahead, a confirmed breakout above 1.5770 with volume could trigger a strong bullish impulse. The measured move from the triangle’s base supports a projection toward the 1.6400 area, making this setup attractive for swing traders aiming to ride the next leg higher. Risk should remain controlled below 1.5440, where the ascending structure would be invalidated.
I’m closely monitoring the price action near the breakout zone. Patience is key, but once we see bullish momentum pushing through the resistance, this trade setup has the potential to deliver a solid upside run. EURCAD remains one of my top bullish forex plays going into mid-May.
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Join our Forex Community Telegram group and connect with thousands of traders.
Hit the Link below
👇👇👇
linkin.bio/andrewstelegramfamily
Hit the Link below
👇👇👇
linkin.bio/andrewstelegramfamily
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.