Greetings Fellow Traders,
As Traders it is our responsibility to understand what the Market's current intentions are to give us the best possible chance of success on our trade decisions. The market is constantly evolving and changing it's course of action and it's important that we stay flexible and adapt to any of those changes that occur.
***While it is Thanksgiving this week in the United States, this does not mean that the market will not move, plus there are 3 very strong days of trading prior to this Holiday. I will not alter my analysis for it.***
Not too long ago I brought attention to not one, but two Descending Wedge Patterns that formed on the 4 Hour Chart for EURCAD. Typically these patterns break out in a Bullish Manner and the Measured Objective is where the wedge started, in this case near 1.4650. On the updated 4 hour chart you can see that the market had a partial bullish breakout for the 2nd Wedge that was created but ultimately it was fizzled out. We've gone from trading in a Descending Wedge to a Descending Channel. Note how the market stayed true to the lower support of the former wedges (now our channel support).
While we have definitely started trading in a Channel, due to our original analyses with the Descending Wedges, I will still keep my Bullish Bias - however we cannot ignore what lies below us and that is a Triple Bottom Horizontal support at the 1.4150 level. Should the market confirm on the 4 hour candle close this level could very well be used for short term sells.
This is just a sneak peak for an upcoming trade opportunity based on what the market actually does. As stated above I remain with a bullish bias but will wait for a 4 hour close outside of the channel and then look for a retest of that channel to act as a new support. Until then, remember we ARE in a Descending Channel.
Please remember to do your own analysis before entering a trade. If you like what you see here feel free to comment, follow, "like" or ask questions. If there is a specific chart you would like my input on, simply send me a PM-0.30% .
For those that it is relevant to, Happy Thanksgiving!
As Traders it is our responsibility to understand what the Market's current intentions are to give us the best possible chance of success on our trade decisions. The market is constantly evolving and changing it's course of action and it's important that we stay flexible and adapt to any of those changes that occur.
***While it is Thanksgiving this week in the United States, this does not mean that the market will not move, plus there are 3 very strong days of trading prior to this Holiday. I will not alter my analysis for it.***
Not too long ago I brought attention to not one, but two Descending Wedge Patterns that formed on the 4 Hour Chart for EURCAD. Typically these patterns break out in a Bullish Manner and the Measured Objective is where the wedge started, in this case near 1.4650. On the updated 4 hour chart you can see that the market had a partial bullish breakout for the 2nd Wedge that was created but ultimately it was fizzled out. We've gone from trading in a Descending Wedge to a Descending Channel. Note how the market stayed true to the lower support of the former wedges (now our channel support).
While we have definitely started trading in a Channel, due to our original analyses with the Descending Wedges, I will still keep my Bullish Bias - however we cannot ignore what lies below us and that is a Triple Bottom Horizontal support at the 1.4150 level. Should the market confirm on the 4 hour candle close this level could very well be used for short term sells.
This is just a sneak peak for an upcoming trade opportunity based on what the market actually does. As stated above I remain with a bullish bias but will wait for a 4 hour close outside of the channel and then look for a retest of that channel to act as a new support. Until then, remember we ARE in a Descending Channel.
Please remember to do your own analysis before entering a trade. If you like what you see here feel free to comment, follow, "like" or ask questions. If there is a specific chart you would like my input on, simply send me a PM-0.30% .
For those that it is relevant to, Happy Thanksgiving!
