Over the past few days, volatile price action in the euro currency has highlighted how using a Renko chart can help us deal successfully with such market conditions, and the pair I want to focus on is the eur/cad. Yesterday the euro had a good day with strong up moves across its matrix, but this was ahead of today’s important ECB meeting. Whilst the bank raised interest rates as expected, the accompanying statement resulted in volatile price action and a fast move lower. Rather it was what was not mentioned in the statement, as the ECB removed
any reference to rate hikes continuing at the next ‘several’ meetings. The 15 min and Renko charts above capture this moment for us.
By Anna Coulling