Warm welcome for a newbie on our portal – EURCAD. It will be the first time that we will be analyzing this instrument but hopefully not the last one as the situation here looks very promising and we are definitely going to check how this setup developed in the future.
EURCAD is having a legitimate buy signal. It looks that the pair has ended the bearish correction that lasted since March. On the beginning of December, EURCAD broke the down trendline and the upper line of the symmetric triangle pattern and those were the first signs of optimism. After this, the price managed to break the horizontal resistance on the 1.514 (green), that was the second bullish victory. The third one happened few days ago, when the price used those resistances as new supports. Those supports worked and the price climbed higher.
With this kind of a setup, the buy signal is ON. If you are still not convinced, look at the chart again. In addition to the things mentioned above, we do have a giant triple bottom formation and the failed flag pattern (red and blue). Those two are also very strong bullish factors.