I was trying to find a trade on EURUSD, as I’ve mainly been following that for a few weeks, and placing some winning (and losing) trades. But I didn’t see anything I had confidence with, so I figured, why not check out some of the other majors. I started with GBPUSD. Given Brexit, and what could or couldn’t happen this week, perhaps that was a bad one to start with.
I did draw up a chart, but I was getting mixed signals.
Price was below the 200 and 50 MA, bouncing around in a symmetrical triangle, lower highs and higher lows, but over down. Perhaps there’s a trade here if I waited another day, which I might still do.
The hourly was also showing some indecision, which wasn’t helping me. Again, maybe more a situation where I just need to be patient.
So I’ll keep an eye on this over the next day or two and see where the action takes me.
On to USDCAD, something I don’t follow at all. But I took a look at the chart anyway to see if anything jumped out. And what did I find? A descending channel, with price right at the downward trendline, just asking for a trade.
Here’s the wide look.
And a bit tighter view
I haven’t placed the trade just yet, as I’m waiting for price to close a bit lower than my trendline. But with a stop of around 65 pips (up to the last higher high) and the potential for price to move down into the green zone, I think my risk to reward is on point.
Give me your thoughts if you find this interesting. Am I on the right track?