**EUR/CAD (4H) Chart Pattern Analysis**
Based on the **4-hour chart**, here’s a breakdown of the **current market structure and potential trade setups**:
** Chart Pattern: Bullish Pullback or Trend Reversal?**
– **Trend:** The market has been in a **strong uptrend**, with price consistently trading above the **50 EMA (yellow line)**.
– **Recent Pullback:** The price has retraced slightly after making a **higher high**, but it is still respecting the **21 EMA (purple line)** and **50 EMA (yellow line)**.
– **Possible Pattern Formation:**
– **Bullish Flag:** If the price consolidates and breaks above **1.5700**, we could see **continuation to new highs**.
– **Double Top Reversal:** If the price fails to break above resistance and drops below **1.5525**, the trend might reverse.
** Bullish Scenario (Trend Continuation)**
**Entry:** Buy on break and close above **1.5700**
**Stop Loss (SL):** Below **1.5620** (recent support)
**Take Profit (TP):**
– **TP1:** 1.5750
– **TP2:** 1.5800
– **TP3:** 1.5850 (extended target)
**Confirmation Needed:**
– Strong bullish candle closing above **7 EMA & 21 EMA**
– Volume increase on breakout
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** Bearish Scenario (Trend Reversal)**
**Entry:** Sell if price drops below **1.5525**
**Stop Loss (SL):** Above **1.5650**
**Take Profit (TP):**
– **TP1:** 1.5480
– **TP2:** 1.5400
– **TP3:** 1.5350 (major demand zone)
**Confirmation Needed:**
– **Break of 50 EMA** with strong bearish momentum
– Increased selling volume
—
** Summary**
**Trend is still bullish**, but price needs to hold above 21 & 50 EMA for continuation.
**Key Level:** **1.5700 for bullish breakout** OR **1.5525 for bearish reversal**.
**Wait for confirmation before entering a trade!**https://www.tradingview.com/x/NAm0gatc/