Two Currency Pairs with BIG Potential Reward

The Market continues to chop and make trading from the intra-day perspective especially difficult. Today, we’ll take a look at a bit larger timeframes on two pairs to see if we can diagnose some possibilities. The first pair is the EUR/CAD. The Euro has been gaining ground for a long time creating an incredible 3,000+ pip Uptrend eurcad_1   Right now, the EURCAD is in a small pullback giving us the opportunity to consider long positions back to recent highs. First, we must break the recent sideways move we have created:   eurcad_2 If the EUR/CAD is able to build above this recent sideways move and make a move to the upside, there is definitely 300 pips available.   The next pair I would like to discuss is the AUD/NZD. Similar to the EUR/CAD we just discussed, the pair is in a pullback after a long downward move. The difference here is that there is huge potential to both sides. Even if the trend does not continue, the reversal potential is also very large: audnzd_1 This is a situation where the Currency pair was in an intensive down trend and has now settled into a sideways market for several months. The highest probability is to the downside because the trend is bearish AND the next wave of the sideways move would be bearish as well. A 350 pip range gives us a lot of room to make good trades. On the other hand, the potential the upside is massive. If this pair has begun this range in order to fuel a move to the upside and change the trend, we will want to take note of it early on and take advantage of this new trend. Either way, there is a ton of potential as price is at a decision point.   That’s all for today’s quick look at the Market. Comments, thoughts, opinions are welcome!

The following two tabs change content below.
Winners Edge Trading was founded in 2009 and is working to create the most current and useful Forex information and training available on the internet.

Winner’s Edge Trading, as seen on:

Winner's Edge Trading in the news