I was going through some of the daily charts in preparation for next week. One of the charts which caught my eye was the daily for USDCAD. After a good period of consolidation over the last week, it began to breakout on Friday. The first chart that is attached is the daily chart with the daily Murray levels. As you can see, 1.0254 was an important SR level. Below are the points which point to a bigger upmove.
1. 1.0254 is an important SR level and it was convincingly broken.
2. Double bottom
3. Breakout from the consolidation range
But a bit of caution is advised by the 4 Hr chart that is attached as well. This chart shows a bearish pin bar and this may be due to the fact that it was late on Friday and hence very low volume. So, we can either wait for the break of 1.0345 or we can wait for it to go down below 1.03 and try a long with very low SL. Do follow me on twitter (http://twitter.com/ns_karthik ) where i will post the trade if and when i enter it.
Winner’s Edge Trading, as seen on: