The Euro / Canadian Dollar denotes how many Canadian Dollars are needed to purchase one Euro. Crude oil is one of Canada’s largest exports and tends to be sensitive to fluctuations in crude oil prices and global growth expectations. The Eurozone is the largest monetary union in the world and one of the most popularly traded currencies in FX.
Let’s do EURCAD technical analysis using supply and demand imbalances for the weekly timeframe. We can see two imbalances in blue drawn. The top supply imbalance has gained control and forced EURCAD to drop strongly for almost a month. Right now, EURCAD is trading in the middle between both imbalances.
Look at EURCAD weekly timeframe screenshot below. You will see a very strong imbalance located around 1.43, where a high probability of buy opportunities will be possible if the underlying trend does not change.
Those trading smaller timeframes or even scalping EURCAD will be able to trade shorts down to the strong demand imbalance at #1. It might not reach that imbalance any time soon.
As a longer-term type of trader, the imbalance located at the bottom of the weekly timeframe has a lot of potential and it’s undoubtedly the strong imbalance in months.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with a full or half-time job. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on EURCAD.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
If you want to learn how to trade using our supply and demand trading strategy, join our supply and demand Forex trading course.
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