Today I want to talk a little bit about eur/cad pair and its’ news driven trend on Friday as well as what we can expect for this pair on the coming week. If you looked at 4 hour chart you will see that on the 1st of April eur/cad reached its’ short term bottom and started forming a reversal pattern. From 5th to 7th it registered an important resistance level at 1.3782 and an important support level at 1.3654. We also knew that there was some pretty serious economic piece of news scheduled to come out from Canada on Friday.
Now, when you see this kind of technical pattern and that information of high importance is due to come out, you should be on alert. If the levels are not broken before the news, you have to wait for the day when key economic news is announced and place stop order above the resistance and another one below the support, so that you could take advantage of the price move that will most probably be caused by fundamental news release. This Friday was no different. News came, the resistance level was broken and if you had put an order before the news you would have made some pips after it came out.
I have already shared how you can trade these events in my previous posts, so browse through my previous posts and find how I trade news. I will upload more details about it in the future. For the time being you should know that eur/cad is in an uptrend mode and dips are opportunities to buy. The same can be said about eur/usd. I hope to write a post how you can trade dips in an uptrend this week.
I will also continue talking about silver in the coming weekend, unless there is nothing interesting in currency markets throughout the week days. Watch my video to see visual illustration of what I mean by all the stuff I have written in the post. See you tomorrow.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.