CME:6C1! has been consolidating at recent lows for so long. Finally, there has been a break out of a large pennant on the weekly time frame with a smaller bull flag forming now, but can Canada keep the momentum going???
Hi traders
The Canadian dollar draws an accumulative pattern at today's session. We are currently seeing a breakout from the range on a large volume, which suggests taking an upward direction after quite a long consolidation in the European session
This is the third in a series of articles looking at some key tools and different practices that can improve your chart reading skills and your trading overall.
Previously we talked about volume and its role in chart analysis. Still, there is one more feature of volume that can help traders to avoid critical mistakes as well as find good entries to their trades....
1. CAD is in a strong bearish head & shoulders pattern.
2. CAD shows lots of weakness on the back of persistent US and G7 inflation numbers, with BoC being the first to pause rates amidst a slowing economy in Canada.
3. At this moment, 6C showing a false breakout before its next move down.
While ideally the head would be a little bit higher, I'm monitoring this formation in expectation of a right shoulder forming and a subsequent sell-off. Fundamental reasons for a sell-off could be Canadian rate cuts or the fear of canadian rate cuts as the economy slows, or a reversal in the recent bearish trends in the price of oil.
This is Trading Week #3 (Jan 16-20) 2023.
For the past 15 years (2017-2022), CAD Futures was down 13 years (86%) of time!
Get ready to SHORT on Monday if price drops below the low of Week #2 trading range at 0.7431.
CAD FUTURES
BOS happened on this currency yesterday to the downward trajectory and attempting to break yet another structure to the up side,my best is we could see a sell off in the purple supply zone but first i'd wait for confirmation on lower time frame.
#REDFOXXX
#PROF.PIPS
CAD FUTURES!
Its apparent this Currency is in a downward spiral, most especially after taking out 4Hrs structure and maintaining the trendline which is liquidity and now I find price in the first supply zone that is only signaling one thing....SELL SELL SELL!
GL
#REDFOXXX
#PROF.PIPS
Call Credit Spread
Symbol:
/6C
Expiration Date:
10/07/22
Days to Expiration:
10
Opening Options:
Buy 0.7527 Call
Sell 0.7450 Call
Probability of Profit:
80%
Max Loss:
$530
Max Profit:
$110
Call Credit Spread
Symbol:
/6C
Expiration Date:
10/07/22
Days to Expiration:
21
Opening Options:
Buy 0.7725 Call
Sell 0.7650 Call
Probability of Profit:
78%
Max Loss:
$630
Max Profit:
$110
Call Credit Spread
Symbol:
/6C
Expiration Date:
09/09/2022
Days to Expiration:
16
Opening Options:
1 Call at 1.7875
-1 Call at 1.7800
Probability of Profit:
75%
Max Loss:
$620
Max Profit:
$130
Type : Bearish Drop
Resistance : 0.7696
Pivot: 0.7645
Support : 0.7559
Preferred Case: On the H4, with price trendline and moving below the ichimoku indicator,we have a bearish bias that price may drop from pivot at 0.7645 where the swing low support is. Should price break pivot structure, we would expect bearish momentum to carry price to 1st support at 0.7559...
Type : Bearish Drop
Resistance : 0.7696
Pivot: 0.7645
Support : 0.7559
Preferred Case: On the H4, with price trendline and moving below the ichimoku indicator,we have a bearish bias that price may drop from pivot at 0.7645 where the swing low support is. Should price break pivot structure, we would expect bearish momentum to carry price to 1st support at 0.7559...
Type : Bullish Rise
Resistance : 0.77970
Pivot: 0.77300
Support : 0.76465
Preferred Case: On the H4, with prices moving within an ascending channel and above the ichimoku indicator, we have a bullish bias that price will rise from the pivot at 0.77300 where the overlap support is to the 1st resistance at 0.77970 where the swing high resistance is.
Alternative...
Type : Bullish Rise
Resistance : 0.77970
Pivot: 0.77300
Support : 0.76465
Preferred Case: On the H4, with prices moving within an ascending channel and above the ichimoku indicator, we have a bullish bias that price will rise from the pivot at 0.77300 where the overlap support is to the 1st resistance at 0.77970 where the swing high resistance is.
Alternative...
