A strong support zone is formed
EUR/CAD has been moving within a side range for almost 3 months; while making this move, a strong support level was formed. The price line is currently approaching this resistance level once more and bulls should keep a sharp eye on EUR/CAD price chart to hunt the next ascending wave.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The price line on USD/HKD price chart is currently indicating 1.3645 at the moment. The Red area on the chart indicates the range inside which the price line is bouncing. The gray line below the price line indicates the support area which has recently been formed and already have pumped the price line several times; this area is considered as a strong support zone and not expected to be broken easily. MACD is showing negative wave on going and RSI has also issued negative divergence signals. Traders can be waiting for the price line to have a retest of the gray area, and after that, traders can enter long positions after any bullish trigger being visible on the chart. The target for the ascending wave could be considered on 1.37 and 1.3964.
Please note that, in case the price line breaks below the gray box, the validity of this theory would highly decrease.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.