CADCHF Eruption!

Good evening ladies and gentlemen

The amazing weather has continued through the week so far here in London so I hope you are getting some of this sunshine where ever you maybe.

So as we should all know by now, the markets have been in consolidation over the past few days but today's action should spark some serious interest back into us Smart Money traders looking for a BOB to jump in on some easy and mechanical profit taking.

Below is the daily chart of the CADCHF, which we have been following since last week. We can see that up until yesterday price had been steadily pulling back until it hit a S Level. Today's action has so far seen a serious fightback in the direction of the trend by using the S Level to catapult around 250 pips. Those who did not "focus on the management" and instead chose to look at their disappearing profits will undoubtedly be kicking themselves today if positions were closed off or stops moved tighter. This should once again drive home the point of having a solid TP and a mechanical approach. Emotions will only make you try and second guess what the market is going to do. However, with the trend in our favour we also have the odds stacked in our favour as shown with today's action. So what does the mean for the rest of the week? Well all we can do is wait and see! We may be rewarded with a BOB above the pivot and further strengths in the direction of our friend or we could just see further consolidation. Today's movement doesn't guarantee us anything.



Generally a big BOB signifies strength in that direction but we could easily be taken into a false sense of security with the break out being a fake out. Look at recent action on the AUDNZD. I was stopped out on this yesterday for a loss after being spiked in on a huge BOB only for it end up being a fake out and reversing. Annoying as it is, that is the nature of trading. My other trades will make up for this loss.

As always do your own analysis.

Today's quote is "This is life's ultimate test - to see without looking, to hear without listening, to know without going, to be without becoming!"

Total Abundance is our Birth Right

Zaheer Anwari