Sunday, March 24, 2013

6C (Setup) - Update (No Trade)

(Update - Mar 28) 6C futures moved strongly away from this area all week on the back of strong numbers from the Bank of Canada. 6C is trading at 98.28 USD and is appearing to be strongly bullish. We are looking to buy new pullbacks in fresh, strong demand zones.

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Canadian dollar futures (6C) looks to be turning up after a extended downturn. The daily chart is forming a rounding base and the RSI turning upward. Prices are confirming and so far printing higher lows / higher  highs. We are looking for a new swing high in the contract.

Trade #1 - Long 6C (60 min chart)

Grade the Trade - +1.5/2 (Setup)

Given the upward bias in larger timeframe, we would look to get long the contract in a fresh high quality demand area.  One such area formed early Friday morning and rallied strongly going into the weekend.

This DROP-BASE-RALLY fractal been seen before in other markets. Looking to be long the contract in the demand zone with two targets T1, T2 providing a decent reward:risk ratio.  This is also a level below a level on the 60 min chart. This lower level is more conservative (low risk), but also has a higher chance of not getting filled.

We shall wait and see as the markets open Sunday afternoon.

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