EURCAD bearish pin bar trade

A bearish rejection candle has formed as the EURCAD market rejected moves higher into a proven resistance level on the daily time frame last session. The level rejected was a previous swing high, and the candle closed lower than it’s open price given the setup that extra bit of bearish attitude.

A breakout entry might be the most prudent approach here as the market seems to be stepping upward now, and the prior days candle demonstrated a lot of bullish power. A breakout entry will give us the confirmation and peace of mine the market is responding to the set-up as anticipated.

I think this could be the beginnings of a range forming, or the start of a larger bullish correctional move, so profit targets could logically be set at the previous swing lows.


A bearish breakout trade is triggered…

eurcad rejection signal plays out


Thanks to the weakness in the EURO, we’ve nailed a few bearish trades on the EUR pairs, EURCAD being no exception. We recently looked over a bearish rejection candle set-up that formed off a proven resistance level on the daily chart.

Because of the recent surge of bullish price action, we opted for the breakout entry on this one, but the retracement entry would have worked too. The market also produced an Inside Day signal after the rejection candle helping War Room traders who missed out on the first phase of the price action set-up to jump in via the Inside Day.

Price action combo signals can be very powerful, and this one managed to produce a nice move for us pushing the market down into the swing low support level we were targeting. The market may continue to move lower from here, or find it’s footing and begin a ranging pattern.

If you would like to know how to trade the price action signals in this combo set-up, then you may be interested in signing up to our War Room lifetime trader package.

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