Risk percentage: I'm willing to risk 4% of my account since it is backed strongly by fundamentals and technicals.
Indicators used: Fib retracement lines
Fundamentally, CAD has released very poor data over the past 2 weeks. The CPI numbers and retail sales have come in very weak. EUR region has been showing some signs of progress and the pair has falled over a 1000 pips over the past few months. It is natural to pare up some losses in the near future until either EUR region again goes back to trouble or CAD starts showing improvements.
Move SL to breakeven once price moves 100 pips in your favour. We will come to know more abt EUR region after Greece's meeting with Merkel and Hollande over the weekend. If news is positive then this baby will surely hit TP and might even go further.
I have already made 200 pips each on GBP/CAD & EUR/CAD until now since last friday when CAD CPI's cameout, but I think this baby has the potential to go way up.
My advice to ppl who want to trade this setup is to wait for price to go up between 1.2450-1.2475 and then go long.
Probably you're right but it seem to be a retest of 1.2451 (have a look at weekly chart).
Hi VW53, Thank you for your comments. I attach a glimpse of the weekly chart. Appreciate your comments on it. Price seems to have touched the 23.6% Fib level of the april to aug drop. I think it will go until the 50% or 61.8% Fib level before consolidating and then resuming downtrend if Euro fundamentals are still weak. What is your opinion?
I had a look also at the montly graph and as I said probably you idea is right; in the last 12 years the PAIR has never touch this low so a rebound is high probably.
If you enter at the level you choosed and if it break 1.25 high probably the TP will be reach.
I'm a fan of you!