Another solid Risk to Reward setup here. I cannot stress how important it is to have a good Risk to Reward ratio under pinning all of your trading decisions. I always look for 5:1, 4:1 or at least 3:1 reward for any capital I put at risk. This means that even if im performing badly and placing more losers than winners, I'm likely to at least break even or even sneak some profit overall.
My reason for placing this short is fundamentally the euro
is weak, its main pair EURUSD
hit new lows today. While fundamentally the Canadian Dollar
is under pinned by strong Oil
In terms of technical analysis
, I am targeting a retest of the broken trend line
here to provide some impetus for bears.