Trading the Loonie with WTI Crude as an indicator
Here we have a potential short and long trade setup forming on the chart of U/CAD. Explanation for the short entry is on the chart. For a long entry I will have to see a bullish breakout to the upside with a retest and hold above the Symmetrical Triangle / Pennant. With the TP1 at 1.2600 and TP2 at 1.2800 and another long entry if 1.2800 is broken (But we'll get to that boat when it sails).
I've also provided an overlay of WTI Crude (TV Ticker : USOIL) on the chart, as the Loonie has a strong relationship with oil. A trick you can use when trading the Loonie is by bringing up Market Depth Order Flow (Level2 Quotes) and Time&Sales for WTI Crude on your trading platform (If those tools are available) along with trading volume for oil, and use that in conjunction when trading U/CAD as a volume/order momentum indicator for the currency pair.
Also provided here is a good website to find economic fundamentals in concerns to different countries.
www.tradingeconomics.com/
Major/Minor Support/Resistance zones are also plotted on WTI Crude.
Cheers, and happy trading, see you all during the week =)
I've also provided an overlay of WTI Crude (TV Ticker : USOIL) on the chart, as the Loonie has a strong relationship with oil. A trick you can use when trading the Loonie is by bringing up Market Depth Order Flow (Level2 Quotes) and Time&Sales for WTI Crude on your trading platform (If those tools are available) along with trading volume for oil, and use that in conjunction when trading U/CAD as a volume/order momentum indicator for the currency pair.
Also provided here is a good website to find economic fundamentals in concerns to different countries.
www.tradingeconomics.com/
Major/Minor Support/Resistance zones are also plotted on WTI Crude.
Cheers, and happy trading, see you all during the week =)