Yesterday's low trading activity gave me a chance to get caught up on my charts, and I caught an important pattern on the EUR/CAD that I missed on Sunday. The EUR/CAD weekly chart has formed an inverted hammer off of support at 1.3340. This is a potential trading opportunity as a fill of the 'wick' will indicate that the bulls are still in control, and a break of last week's high could signal a return to the monthly high at 1.3708 and simultaneously bring the potential for a return to the 2009 highs of 1.4378 into the realm of possibility sooner than expected. We have a few hurdles of course, such as the Monthly 62EMA at 1.3920, and the monthly zone at 1.3740, which price halted just shy of 3 weeks ago, is a serious hurdle to overcome. 1.3571 is also important as last week we printed double daily pin bar reversals at this level, which forced the pair to revisit 1.3340 again before once again turning north. To the downside, if prices fall below 1.3340, this will probably bring a run to the January highs at 1.3185 which is now acting as support and lines up with the Daily 62EMA perfectly.
My overall outlook on this pair is bullish as long as 1.3340 holds.
Happy Trading!