EURCAD hits a dam!

Good evening ladies and gentlemen

What a beautiful day with regards to the weather!! Long may it continue! But as long as we have trading, everyday is a beautiful day! I hope you all managed to get some of this sunshine where ever you may be!!

So down to business and lets see what the movements of our girl for the week, the EURCAD, have been so far today! After the first two days of rapid movement I felt that we could have seen a retracement and that is exactly what has happened today. After bursting the banks on Monday, price hit a dam which was in the form of a S and R zone and reversed back towards the RN! With RSI and Stochastics well OB yesterday, today's movement should have come as no surprise. We also know that price does not move in a straight line! So what next? We could see a bounce of the S line. If that is broken we could see price being held by the trend line. We could also see price kept within the squeeze before another break out. Price could also ignore all of this and feel the need to retest the VI on both the daily and the 4 hour time frame. Either way I will leave it to you to use the indicators, your own analysis and more importantly allow the market to dictate what action to take next!!



Let me leave you with this Japanese Proverb. "Fall down seven times, get up 8!"

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari