EUR/CAD has finally experienced its first impulsive move to the upside after consolidating for the past 35 days. We now expect it to continue till the first zone of resistance at 1.47650. At this point we expect the first round of buyers to cover their long positions and thus we may experience some correction in the form of a bullish flag. This may cause price to pull-back to the previous resistance structure and the top of the range of the consolidation at the price 1.4675.
We can look for buy entries along that region, entries are valid from 1.470 till 1.4650. Stop should be placed approximately 70 pips below at 1.460. If price manages to fall back that low, it indicates we are back in the previous broken range.
Potential economic events that may impact this trade, and we should be aware of these include:
02/05/2020 - (EUR) ECB President Lagarde speaks
02/05/2020 - (CAD) Trade Balance (Previous - 1.1B)
02/05/2020 - (CAD) Gov Council member Wilian Speaks
02/06/2020 - (EUR) ECB President Lagarde speaks
02/07/2020 - (CAD) Employment Change (Previous - 35.2K)
02/07/2020 - (CAD) Unemployment Rate (Previous - 5.6%)
Entries Between: 1.470 - 1.4650. Ideal entry at 1.4675
Stop Placement: 1.460
Targets: Profit Level 1 - 1.480 - Profit Level 2 - 1.490
Position Increments: 50% of Original Position should be secured at each profit level.
Trailing Stop Loss Placement: Trade should be made risk free after 50 PIPS movement from entry price.