EUR/CAD Swing Trade

EUR/CAD looks like a candidate for a swing trade. Wednesday, price dropped like a rock, closing in a very bearish candle. Yesterday’s bar continued down, touched a prior key support level and bounced, creating a very nice bullish reversal piercing bar.

EUR/CAD Daily Chart

I propose taking a long position upon the break of the top of yesterday’s candle at 1.3417. Place your stop below yesterday’s bar and the 1.3300 psych level at 1.3297.  Targets are the top of Wednesday’s bar at 1.3535 and the prior swing high of 1.3652. I propose leaving a slice on after these two targets as a runner to catch a high move.

As always, be sure to size your trade in such a way that you will not exceed your risk parameters in the event of a stop out. Remember – every trade, no matter how beautiful, has the potential to go against you and stop you out. Live to trade another day.

I also recommend moving your stop loss to break even as soon as your trade is up 25 pips.  There will always be another trade if you get stopped out. Always protect your account.

As always, may the pips be with you!

Tim

Secret Asian Man 😉

Follow me on Twitter: @IsItCoffeeYet

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