Trend Line Resistance Offers EURCAD Short Opportunity

The

EURCAD

is approaching trend line resistance offering a selling opportunity near 1.3550.

On a recent TV interview I was asked why the

Euro

has been holding up despite their sovereign debt crisis. My response was that if you strip out the

USD

, the Euro has been in a down trend against the other currencies like

AUD

,

NZD

and even the

CAD

.

With trend line resistance approaching on the EURCAD, this offers an opportunity to align our trade in the direction of the trend. Therefore, this allows us to sell the Euro-Zone risk.

(Created using FXCM’s Marketscope 2.0 charts)

To learn more about the importance of trend lines, constructing trend lines, how to use them to identify entries, watch this video from Las Vegas:

Using Trend Lines to Optimize Entries

Additional Resources

Support and Resistance

Chart Reading 101

The Professional Trader’s Friend: Trends

—Written by Jeremy Wagner, Lead Trading Instructor,

Education

To contact Jeremy, email

[email protected]

. Follow me on Twitter at @JWagnerFXTrader.

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