EURCAD H4 TF Analysis

Key Elements Observed on the Chart:

1. Market Structure Break (MSS):
   • A clear shift in market structure is noted. The recent bearish move has broken prior lows, indicating a potential bearish sentiment.
2. Balanced Price Range (BPR):
   • A BPR zone is identified, serving as a possible resistance area. Price is expected to react to this region, providing potential sell opportunities.
3. Order Block (OB):
   • A bearish order block is marked, which aligns with the current bearish market bias. This area could act as a supply zone, where sellers may dominate.
4. Trendline Break:
   • A previous trendline support has been broken, further reinforcing the bearish perspective.
5. Anticipated Move:
   • The chart shows a forecast of price reacting to the OB/BPR zone and continuing downward.

Potential Trade Setup:

Bearish Scenario:

• Entry:
  • Wait for price to retrace into the identified OB (red zone) or BPR (gray zone).
  • Look for bearish confirmation patterns, such as rejection wicks or bearish engulfing candles, on lower time frames.
• Stop Loss:
  • Place the stop loss slightly above the OB zone to account for potential volatility.
• Take Profit:
  • Target the previous significant low (around 1.45500) for a favorable risk-to-reward ratio.

Alternative Setup:

• If price invalidates the OB by closing above it, reevaluate the bias. A break above the gray BPR could suggest a bullish shift in structure.

Key Considerations:

1. Risk Management:
   • Always maintain a proper risk-to-reward ratio (e.g., 1:3 or better) and use an acceptable percentage of your account balance for the trade.
2. Economic Calendar:
   • Check for high-impact news related to EUR or CAD that could affect market volatility.
3. Lower Time Frame Confirmation:
   • Use lower time frames (e.g., M15 or M30) to refine entries for precision.