This is my trading plan for the CADCHF

Non farm Payrolls report

I dont think I’ve seen the market as slow as it has been trading this week in a while… What are your thoughts about this?

So my question to you is this one: What currency pairs are you trading/monitoring?

Now, do you think that the fundamental announcements have something to do with it?

Tomorrow we’ve got the FOMC minutes (which has proved to be the most important fundamental announcements, or at least the ones that has the most impact in the market) and the Advanced GDP.

Then later this week, on friday we’ve for the Non-farm payrolls report…

So yes, I have a feeling that that’s the reason the market has been so slow… 3 of the most important announcements in the same week…

What do you think?

Ok, now to the CADCHF Analysis

CADCHF Long term Analysis

Take a look at its LT chart:

CADCHF 1D

Even through the market hasn’t been that smooth, it still is trading in a bullish condition and long opportunities are in play.

What we need to do now is to look at the short term charts and see if we’ve got clear levels there.

CADCHF Short Term Analysis

Here is what the hourly chart looks like:

CADCHF 1H

So it looks like we’ve got clear levels… and that’s perfect!

This allows us to create a well defined trading plan…

There are two possible scenarios here:

  1. If the CADCHF retraces back the ST support level (0.8302) and it forms a significant pattern with upward pressure I’ll go long.
  2. If the CADCHF breaks the upper resistance level I’ll be inclined to take a breakout trade.

One word of caution though…

Remember we’ve got plenty of important fundamental releases this week, we also got the CAD GDP, and the CAD is one the currencies that react the most to its fundamental announcements…

So be careful alright?

Your turn

What do you think about my CADCHF Analysis? Are you going to trade it?

What other pairs are you trading/monitoring?

How do you handle fundamental announcements?

Share your thoughts!

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Eric Aroh

    Raul,

    Thanks for providing us yet another excellent trading opportunity, and I agree completely with your analyses. I will wait/watch and see what the market does; LONG trades appear the option – pending right market conditions.

    Market is indeed VERY slow.

    I am currently watching three pairs – NZDUSD, USDCAD & USDJPY:

    * NZDUSD : LT uptrend, but currently in retracement, and some distance from LT support (0.8420). Will wait for a bounce back to direction of LT trend and go LONG.

    * USDJPY : Ranging between 101.04 & 102.70. Contemplating range trading on only 166pips range is risky so I will wait for a breakout in either direction before trading.

    * USDCAD: broke the descending triangle formation with a bullish candle on 25July2014. Ripe for LONG trade after yesterday’s bullish candle (with only 53 pips which is less than the Average Daily Range). This lends fact to the slow market. I will be cautious, and only trade if the pending announcements are in favor of the USD.

    What do you think?

    Thanks.

    • Raul Lopez

      Yep, the market has been slow, mostly because of the fundamental announcements later today and the NFP report on friday…

      I have the NZDUSD in bearish condition, I’m not trading the USDJPY (too tight range) and I dont see clear levels in the USDCAD.

      Good luck!

  • Paul

    Raul. Just a quick question. Why do my charts on Meta Trader not look like yours. I find yours much easier to read and see the support and resistance levels. Do you use a special program to plot the charts?

    • I see it on Tradingview.com the same as Raul’s chart, but still improving my analysis for the box!

      • Raul Lopez

        Thanks Craig!

        • ST support looks like .8284 – looks like coudl be time to go Long. Whats your thoughts Raul?

          • Raul Lopez

            That’s correct Craig… Any significant pattern with upward pressure will do…

            Let me know if you trade it!

            Good luck!

    • Raul Lopez

      Hello Paul, as Craig mentioned, I use tradeview, but just for my analysis… I take my trades on other platform though…