Bagged 320pips in our direction before the rally began in my last speculation on this pair (see link below).
Despite an overall Bullish perspective for the Euro, most of the new year has seen price hustling below CA$1.55400, a feat showing less confidence in the Euro. The unattractive net change in unemployment rate released last week mirrors a negative implication for consumer spending which has an adverse effect on economic growth making the Canadian Dollar less attractive too. This explains the indecisive pattern represented on the chart (parallel channel) but following the positive figures coming out of economic release last week for the Euro, a promising future for the Euro over CAD in the coming if the price does not break below CA$1.52500 (completing a Double Bottom structure) appears to be feasible.
Tendency: Uptrend ( Bullish )
Structure: Reversal pattern (Double Bottom) | Supply & Demand
Observation: i. Characterized by an indecisive pattern since mid last year, the price has been caught within a range with no clear sign of a rally or decline.
ii. This been said, it appears we still can make a trading decision based on certain setup seen on the chart.
iii. A possible formation of a Double Bottom is unfolding if price did not break below demand zone @ CA$1.52500 in the coming week(s).
iv. It is advisable to be very conservative at this juncture for a long position can only be really confirmed if price breaks above the Neckline @ CA$1.55400 (outright buy or buy from correction).
v. It is worthy to note here that, any significant Breakdown of demand zone @ CA$1.52500 shall consider this bias invalid... Trade consciously!
vi. A significant Breakdown of demand zone @ CA$1.52500 might see price head for CA$1.49000 area before the rally begins.
Trading plan: BUY confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:3
Potential Duration: 5 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Despite an overall Bullish perspective for the Euro, most of the new year has seen price hustling below CA$1.55400, a feat showing less confidence in the Euro. The unattractive net change in unemployment rate released last week mirrors a negative implication for consumer spending which has an adverse effect on economic growth making the Canadian Dollar less attractive too. This explains the indecisive pattern represented on the chart (parallel channel) but following the positive figures coming out of economic release last week for the Euro, a promising future for the Euro over CAD in the coming if the price does not break below CA$1.52500 (completing a Double Bottom structure) appears to be feasible.
Tendency: Uptrend ( Bullish )
Structure: Reversal pattern (Double Bottom) | Supply & Demand
Observation: i. Characterized by an indecisive pattern since mid last year, the price has been caught within a range with no clear sign of a rally or decline.
ii. This been said, it appears we still can make a trading decision based on certain setup seen on the chart.
iii. A possible formation of a Double Bottom is unfolding if price did not break below demand zone @ CA$1.52500 in the coming week(s).
iv. It is advisable to be very conservative at this juncture for a long position can only be really confirmed if price breaks above the Neckline @ CA$1.55400 (outright buy or buy from correction).
v. It is worthy to note here that, any significant Breakdown of demand zone @ CA$1.52500 shall consider this bias invalid... Trade consciously!
vi. A significant Breakdown of demand zone @ CA$1.52500 might see price head for CA$1.49000 area before the rally begins.
Trading plan: BUY confirmation with a minimum potential profit of 300 pips.
Risk/Reward: 1:3
Potential Duration: 5 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
Good evening and stay tuned in!