Enclosed 3 X swing trade setups USD/CAD, GBP, CAD, and EUR/CAD…
Last week the CAD was the strongest of the major currencies and we now expect counter-trend action and think selling the CAD offers good risk to reward. All the setups are similar in terms of we have the CAD pushing down the other 3 majors to the outer Bollinger band (the orange line). When we get high volatility moves to or outside of the outer Bollinger bands on high volatility the chances of counter-trend action are high as the moves are driven by sentiment. For contrary traders we think all the setups below offer good risk to reward. Our view of the key levels of support and resistance below…
GBP/CAD
After moving outside of the outer Bollinger Band on Friday, we rebounded strongly yesterday and we are trading in low volatility today. We expect any pullbacks to be held by first evel support and a break of resistance is expected to see a major move to the upside.
USD/CAD
After falling outside of the outer Bollinger band we have moved back above it and the last 3 days has seen 3 x low volatility candles as we trade sideways in low volatility. A breakout above 1.2330 is expected to follow through strongly to the upside and stop protection in our view should be behind the outer Bollinger Band.
EUR/CAD
On Friday, we saw a big red candle move outside of the outer BB but we moved back within it yesterday and today we are trading in low volatility above support. If we move above todays open and through the 1.4830 level we would expect follow through buying to the upside.
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