Good afternoon traders,
I wanted to bring this opportunity to your attention, as I feel this has a great potential to quickly fill this evening. I’ve been looking at the EUR/CAD for the last 3 days. The market’s formed a protective boundary to the north and south on this pair at the following price points: north side, 1.42000 and south side, 1.41557. We have an easy decision here. If the market breaks north from this range we buy in and put our stop below the old Upswing 1.27, which is natural resistance in the market. This could net a very favorable risk versus reward for many Forex traders; even more so if we are looking to the south side of the trade! Looking at the chart below, the exit on the north side is the yearly target in yellow.
On the downside, I am looking for some negative space created in this market to be filled by the opposite side, due to some very important price calculations, (known as targets) being formed below this market. Again, this is a great opportunity as we have a line in the sand already drawn for us in the upper and lower range.
Some traders might see the market on a 2-hour chart start to wick and test one of the lines and decide to make an entry, DON’T BE ONE OF THOSE TRADERS. In my opinion, we need to see a test in the resistance or support before we make an entry. Looking for a good buy low price in the north trade, or sell high price if the south trade happens.
The Forex market is a homeostatic entity that seeks to exist at peace. When there are big pushes there are generally BIG pulls. That is what I am counting on here on the south side of this trade. These trades could result in great risk versus reward and you don’t have to win every trade to make some money in this market.
As you can see, I have a pending sell ready to go right in the middle of this range established by the blue lines. Initially, I will treat this as a straddle trade, but as direction becomes more clear I plan on letting in the appropriate direction one time to make the trade more valuable to me.
Exit 1 is no less than 76 pips from the possible entry point at the bottom of this newly established range.
Exit 2 is 169 pips from possible entry at the bottom of the range outlined in blue.
Exit 3, which would be our home run here, is 269 pips from the bottom of the range in blue.