The euro has been stuck in a prolonged bearish trend against its Canadian rival for well over a week. Technical indicators are now showing that an impending bullish trend is on the horizon, providing traders with an excellent opportunity to open up long positions at a great entry price.
We will be looking at the 8-hour EUR/CAD chart, provided by ForexYard. The Technical indicators being looked at are the Moving Average, Williams Percent Range and Relative Strength Index.
1. Currently, the currency pair is trading right along its moving average. Traders will want to pay careful attention to this indicator. Should it move above the Moving Average line, it would be a strong signal of impending bullish movement.
2. The Williams Percent Range is hovering around the -80 level. Typically when the indicator is at this level, it is a sign that the pair is in oversold territory and that an upward correction is likely to occur.
3. The Relative Strength Index has been trading well below the lower support line for some time now. This is a clear indication that the pair is oversold and that bullish movement is likely to occur in the near future.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
