Wednesday, May 23, 2012
EURCAD At Key Support
This pair is currently at a key support. This can be seen in the weekly chart where price was supported at 1.27828.
Clearly, the trend has been down. But selling short would not make any sense as price is likely to be supported at 1.27828. It would be advisable to go long instead.
Looking at H4, we can identify a potential buying point (1.28776) which has been the low for 2 weeks, a good support.
Trading reversals tend to be more risky but will certainly be compensated with a better risk to reward ratio. If price manages to break through 1.28776, I would prefer to be flattish and focus on other pairs instead. There's really no point selling into a strong support.
Keep the pips coming!