This morning we can see some thrust going on in the UP direction. This is, however far from being enough. One needs to see whether the Resistance area shown on the hourly chart above can be pierced through. If yes than this would signal a possible trend reversal. Also do not forget the rate decision tomorrow by the BoC. Volatility before major announcements are quite common. Also bear in mind that Oil reached also a strong resistance point and may start going down. It is much more risky to trade against the major trend. Therefore any long entry taken at this point in time shall be considered a risky undertaking. Personally, as a longer term trader, I want to be sure before going against the major down trend and prefer to wait for trend reversal signals like double, triple bottom, H&S, higher lows, trendline breakouts etc. Good trades.
Comment:
As described before, the Resistance Area proved to be way too strong to pierce at this overall bear market. There is much weakness in this pair still and we need to wait for some convincing patterns to appear in order to challenge into a bull position. I have seen some of the blog members suggesting Long before the BoC announcement. Trading requires an important discipline. There are two important trade rules especially novice traders shall follow. 1-Never trade against the major trend 2- Do not trade very close before rate announcements (win loss ratio is 50/50 and high speculation). I hope some of them learned by losing, like many of us did. Losing is the best teacher as it hurts you (like a baby learning not to touch the fire). We shall still wait for a stable base and pattern in order to test long position with this pair. Good Trades.