FX.co ★ cingcalinguk | EUR/CAD

Hey everyone! Ive been doing some in-depth technical analysis on the EUR/CAD pair, and Im seeing some really interesting developments that point towards a strong bullish outlook. My focus, as always, is on combining various technical tools to get a comprehensive picture, specifically looking at weekly pivot levels, baseline indicators, and the powerful 1-2-3 pattern. Lets start by looking at what happened right after the Asian trading session opened. My Vertex indicator flashed a signal that the pair was oversold. This is often an early warning sign that a reversal might be imminent. True to form, this oversold condition was followed by a sharp increase in price. While the initial surge was promising, its important to note that I havent yet seen full confirmation of this specific indicators signal, so Im treating it as an initial hint rather than a definitive confirmation on its own. However, when I bring in other indicators, the picture becomes much clearer. My 200-period and 50-period moving averages are both showing signs of an emerging uptrend. This is a classic bullish setup: when the shorter-term moving average (50-period) crosses above the longer-term one (200-period), or when both are sloping upwards with price above them, it strongly suggests that the market sentiment is shifting towards the buyers. This aligns perfectly with the initial hint from the Vertex indicator.

Whats really solidifying my bullish conviction is the formation of a 1-2-3 pattern by the buyers. For those unfamiliar, a 1-2-3 pattern is a reversal pattern that indicates a shift in momentum. It typically involves a low (1), a retracement (2), and then a break above the high of the retracement (3). This pattern clearly demonstrates the buyers ability to push prices higher and overcome previous selling pressure. Not only have they formed this pattern, but theyve also confirmed it by breaking decisively above the 1.60695 level. This breakout is a critical piece of evidence, showcasing the underlying strength of the buyers and their determination to drive the price upwards. Given this confluence of bullish signals – the oversold condition, the emerging uptrend from the moving averages, and especially the confirmed 1-2-3 pattern – my strategy is now clear. Im not going to chase the price higher immediately. Instead, Ill be patient and wait for a healthy pullback to the weekly pivot support level at 1.60467. This level represents a key area where I expect buyers to step back in, offering a lower-risk entry point. Once the price retreats to this support, I will be looking to open a long (buy) position, aiming to capitalize on the confirmed bullish momentum. In summary, EUR/CAD is looking strong for the bulls. While the Vertex indicator gave an early heads-up, the real confirmation comes from the bullish alignment of the 200 and 50-period moving averages, and most importantly, the formation and confirmation of a 1-2-3 pattern with a break above 1.60695. My plan is to wait for the market to retrace to the weekly pivot support at 1.60467 before entering a buy trade, aligning myself with the prevailing bullish trend.