EURCAD Chart Pattern Analysis📊 Based on the 4-hour chart, here’s a breakdown of the current market structure and potential trade setups:🔍 Chart Pattern: Bullish Pullback or Trend Reversal?
-Trend: The market has been in a strong uptrend, with price consistently trading above the 50 EMA (yellow line).
-Recent Pullback: The price has retraced slightly after making a higher high, but it is still respecting the 21 EMA (purple line) and 50 EMA (yellow line).
-Possible Pattern Formation:
-Bullish Flag: If the price consolidates and breaks above 1.5700, we could see continuation to new highs.
-Double Top Reversal: If the price fails to break above resistance and drops below 1.5525, the trend might reverse.
📈 Bullish Scenario (Trend Continuation)
✅Entry: Buy on break and close above 1.5700
✅Stop Loss (SL): Below 1.5620 (recent support)
✅Take Profit (TP):
-TP1: 1.5750
-TP2: 1.5800
-TP3: 1.5850 (extended target)
📌Confirmation Needed:
-Strong bullish candle closing above 7 EMA & 21 EMA
-Volume increase on breakout
📉 Bearish Scenario (Trend Reversal)
❌ Entry: Sell if price drops below 1.5525
❌Stop Loss (SL): Above 1.5650
❌Take Profit (TP):
-TP1: 1.5480
-TP2: 1.5400
-TP3: 1.5350 (major demand zone)
📌Confirmation Needed:
-Break of 50 EMA with strong bearish momentum
-Increased selling volume
🔹Trend is still bullish, but price needs to hold above 21 & 50 EMA for continuation.
🔹Key Level: 1.5700 for bullish breakout OR 1.5525 for bearish reversal.
🔹Wait for confirmation before entering a trade!
