18 Dec Canadian Dollar – Time To Become Bearish? AUD CAD; GBP CAD; USD CAD
I’ve been itching to post about my long term outlook for GBP:CAD for ages now and have been running a couple of small trades on and off the long side for a couple of Months now but haven’t reached the level of confidence required to really jump into these in size or with real commitment.
Now that might be changing and here I present you with a trio of trading opportunities to make the most out of a bearish Canadian Dollar.
It’s traded this daily range for ages now, almost 18 Months in fact, but finally we are seeing a pattern that looks like it may have a massively bullish outcome.
Where you enter this trade would depend on your risk parameters with the obvious entry being on a confirmed breakout of this huge daily range, however, I’ve been inclined to take the risk and enter a little early as I have a strong belief in the outcome.
For now, GBP:CAD is showing a succession of higher lows with each creating smaller and smaller rallies into resistance. It is my belief this resistance will be broken in 2012 and the resulting rally will be fierce:
A few Months back I had a stunning trade on this pair which gave results way beyond my expectations. Since then price has consolidated and we now have the formation of a triangle which could very well be a Bull Flag. I will look to enter this trade either on a pull back to support, or alternatively on a confirmed break of the annotated flag:
If you are a short term trader this is certainly an attractive set-up to watch in view of entering a long position on the break of the bullish consolidation shown in this 4 hourly chart:
Longer term things look equally positive as the Australian Dollar has been trending upwards against the Canadian Dollar for a solid 4 years and doesn’t show any obvious signs of reversing:
I will update on any new positions I take on these pairs in the comments section under this post.