Tuesday, 3 May 2016

Trading Call: Buy the USD/CAD Pair

As at close of business today, the USD/CAD pair has just completed a bullish  key reversal pattern.

A key reversal occurs when the following happens:

1.) An extended bearish decline in prices for several price periods. In this case, the USD/CAD pair has dropped all the way from a high of 1.4645 in January 2016 and got to a low today of 1.2430.  Now that is a drop of over 2000 pips. This decline is long overdue for a correction guys!!!

2.)  The market makes a new low and then closes significantly above the previous day's high.  This just happened today! The market made a new low of 1.2430 and then as I write closed at 1.2720.  Yesterday's high was 1.25570.  Therefore, today's high of 1.2720 is significantly higher than yesterday's .

These two conditions present an opportunity. I have gone long myself and would be posting the screenshots shortly.

Good luck guys.

BUY AT 1.2720 AND PUT A STOP LOSS ORDER AT 1.2430.  POSSIBLE TARGETS ( THE 50 PERIOD MOVING AVERAGE 1.2990).

No comments:

Post a Comment