Consolidation and the Cad

Posted on Tuesday, April 13th, 2010 at 3:59 pm.

The UsdCad right now is setting up for what I believe will be an excellent breakout. On the day time frame, for the last 5 candles we have had lots of downward pressure created from the quick downward swinging market. This is very visible on the hourly time frame, semi slow upward movement followed by huge red candlestick dropping down, which has created those downward pushing big wicked candles on the daily chart. This combined with a very nice little consolidation area tells me we should have a breakout very soon, and if it goes short, we should be able to take the trade for a pretty large profit. Two things I’m using for a breakout both on the hourly time frame. First, there is a clear trendline with points of support on the 7th, the 9th, and just two hours ago. If it breaks the trendline I will consider entering. Second yesterday’s low which is at 1.0009, if we get a close beyond there, I’m in. Now it’s just a waiting game for that breakout, good luck with this one and I wish you guys the best with your trades!