From a holistic point of view, the Euro is bullish and likely to gain in the next couple of days if not weeks. What interests me in this pair is the way price action is panning out. While prices have been correcting after appreciating in Q1 2018, chances are trend is about to resume with the Euro in the upper hand. In the daily chart we can see that besides the oversold stochastics, the common currency is finding support at the 50% Fibonacci retracement level, a common reaction point for Euro pairs.
If we zoom in to the 4HR chart, the same set up is in play only that there is a bullish divergence pattern with a buy signal in place. Of course we can try to capitalize on this but waiting for a breach and close above the 38.2% Fibonacci retracement level would be prudent in the short to medium term. Positional traders can even wait for further confirmations and that would happen when prices close above the minor resistance trend line in the 4HR chart.
Because of these technical developments, this is my EURCAD trading plan:
Buy Stop: 1.5680
Stop Loss: 1.5580
Take Profit: 1.6080
Let me know what you think. Have a good trading day!!!