After the recent EUR/CAD pullback, price has well and truly rallied into daily resistance.
This daily spike is still littered across all of our euro cross charts and while ‘event spikes’ like this are often best ignored, this one is interesting because of the history at this exact level back at the end of 2015:
EUR/CAD Daily Chart
Yes, the level has been broken and chopped through once or twice, but look at how price has reacted when it has held. It’s a level that has been active for years, of course there are going to be times where it doesn’t hold to the pip.
This is okay!
EUR/CAD 15 Minute:
EUR/CAD 15 Minute Chart
I’ve also included this intraday chart with a hindsight level that we started the week with. So after the higher time frame resistance level held, we obviously want to look for shorts. Short term support turned resistance levels are ideal because of the risk:reward ratios that they offer. This level that I’ve marked is the one that jumps out at me. Did you trade it?
Looking forward though, as long as the higher time frame resistance level has held, we can continue to look for shorts just like this. Keep an eye on the @VantageFX Twitter account and don’t be afraid to share your own intraday setups playing off this level.
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