EURCAD on the daily chart has been on a clear downtrend. A head and shoulder pattern usually reverses the trend and we can clearly see an inverse head and shoulder pattern forming on this pair. We think it might just reverse the downtrend. Hence we will be watching for a long using price action signals. We will be watching for a pin bar, engulfing bar, morning star e.t.c Ideally we would like to enter at the black line. Our stop will be at the red line which is just below the neck line. This trade was also taken last week and we ended up with over 200 pips.
EURSEK On the Daily chart has been on a clear uptrend. However for the previous few weeks the pair has been ranging and we are looking to trade this range. We just don’t like the price action and we will be cautious on entering long with a big red candle that closed on Friday. If we get suitable price action we will want to enter long at the black line which is the range support and have small stop with the red line just below the support area. If we get reversal candle sticks we will enter long.
A very strong uptrend on USDZAR daily chart. The pair also has been ranging for the previous few weeks. We have pin bars forming at the range support. We would have liked to be in this trade already but might have missed the opportunity. We want to enter at the range support which is the black line, so we need a pull back to that level before we can enter long. Friday USD core CPI was also very positive for the USD, hence we think the uptrend on this pair should resume. If we do get a pull back we will enter this trade. Entering at current prices does not make sense as we won’t be able to get a suitable risk to reward.