{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/forexschoolonline.com\/eurcad-prints-engulfing-bar-at-resistance-on-daily-chart\/#BlogPosting","mainEntityOfPage":"https:\/\/forexschoolonline.com\/eurcad-prints-engulfing-bar-at-resistance-on-daily-chart\/","headline":"EURCAD Prints Engulfing Bar at Resistance on Daily Chart | 11th Sep 2014","name":"EURCAD Prints Engulfing Bar at Resistance on Daily Chart | 11th Sep 2014","description":"The EURCAD has printed a Bearish Engulfing Bar (BEEB) on the daily price action chart that is rejecting the\u00a0old support\/new resistance area. \u00a0As the daily chart shows below; price has been in an extended down trend and this old support level is where price paused before then continuing on it’s move lower. Price has since […]","datePublished":"2014-09-11","dateModified":"2019-08-05","author":{"@type":"Person","@id":"https:\/\/forexschoolonline.com\/author\/jonfox\/#Person","name":"Johnathon Fox","url":"https:\/\/forexschoolonline.com\/author\/jonfox\/","identifier":1,"description":"Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world.","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/d0b589a007c132efe23124c05a02b68524844c0089401129bd50bc12ee59d3a9?s=96&d=monsterid&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/d0b589a007c132efe23124c05a02b68524844c0089401129bd50bc12ee59d3a9?s=96&d=monsterid&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Forex School Online","logo":{"@type":"ImageObject","@id":"https:\/\/www.forexschoolonline.com\/\/wp-content\/uploads\/2018\/09\/FSO-Transparent-logo-gr.png","url":"https:\/\/www.forexschoolonline.com\/\/wp-content\/uploads\/2018\/09\/FSO-Transparent-logo-gr.png","width":240,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.forexschoolonline.com\/\/wp-content\/uploads\/2014\/09\/eurcad-daily.png","url":"https:\/\/www.forexschoolonline.com\/\/wp-content\/uploads\/2014\/09\/eurcad-daily.png","height":"584","width":"962"},"url":"https:\/\/forexschoolonline.com\/eurcad-prints-engulfing-bar-at-resistance-on-daily-chart\/","about":["Price Action Charts in Focus"],"wordCount":391,"articleBody":"The EURCAD has printed a Bearish Engulfing Bar (BEEB) on the daily price action chart that is rejecting the\u00a0old support\/new resistance area. \u00a0As the daily chart shows below; price has been in an extended down trend and this old support level is where price paused before then continuing on it’s move lower. Price has since retraced back higher to test this old support level and at this stage the old support has acted as a price flip level and as a new resistance.The second 8 hour chart below shows how when price reached the price flip resistance, price was rejected and sold off heavily as the bears came in at the new resistance. This will often happen when price makes the first test of the new support or resistance because as I discuss in the trading lesson Taking High probability Trades From the First Test Support\/Resistance, when price makes it’s first test of support or resistance the supply or demand will normally be at it’s strongest just like the 8hr chart shows below as it formed the bearish engulfing bar.If price can break this daily bearish engulfing bars low, the first support area below comes in around the recent swing low area. From there for any decent move lower to occur, price would have to break the swing low area and price would then be trading down to prices that have not been seen in almost 12 months. If price does not move lower, the trend is still heavily down, so until the market shows otherwise, continuing to look for short trades in this pair looks the best play until a reversal plays out. Special Note! I have just released a new trading lesson that all Forex traders need to read as it discusses the state of the current market and how the volatility this year has dropped to near record lows. This lesson looks at how this affects you as a trader, but more importantly how you need to prepare and what you need to do in these ever changing markets so that you can\u00a0prosper. To read this new trading lesson see here: Price Action Traders Need to Adapt With Record Low Volatility EURCAD Daily Chart EURCAD 8hr Chart Related Forex Trading Education– Making Money Trading Reversal Trigger Signals"}