EUR/CAD: Riding the Ascending Channel with Short Setup Potential

May 28, 2023

The EUR/CAD currency pair remains within an upward trend, as observed in recent trading sessions. After reaching the support area near 1.45200, the price initiated a sequence of higher highs and higher lows within an ascending channel. Notably, the price has repeatedly tested the 50% Fibonacci Resistance level, and following the latest retest and subsequent rejection, it is anticipated that the price may continue its descent towards the lower region of the chart to retest the aforementioned support area, potentially surpassing it.

Moreover, there is the formation of an AB=CD pattern, indicating a potential trading opportunity. Based on our analysis, we propose a new short setup with the target of reaching the 1.127 Fibonacci extension of the AB=CD pattern, estimated to be around the 1.4500 area. This suggests a favorable opportunity to capitalize on the projected price movement and potentially profit from the anticipated downward momentum.

May 28, 2023

Note

✅ Panoramic of the trade

May 30, 2023

Trade closed: target reached