Sunday, March 31, 2013

(6C) - Setup - Stopped Out Apr 6th

(Updated)

Employment news released this week (Mar 31 to Apr 4) sent the CAD/USD plunging taking out all short term supply. The trade quickly traded through the zone and was closed.  We will continue to look for larger time frame supply and demand zones.

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Here is a trade setup for the following week on the 6C (Canadian Dollar) futures contract.

Its promises to be a quick trade found on the 15 min chart. 

Trade #1 - Long 6C

Grade the Trade - 

A sharp drop base rally on the 6C contract occurred last Wednesday and then consolidated for the rest of the week. We are looking to buy the retracement of this move.

In general the 6C contract has been bullish of late, after declining significantly on the larger time frames. There is a distinct uptrend on the 60 min chart with a series of higher highs, higher lows.

We are looking to be long the contract at about 0.9797 with a stop at 0.9790.  The target will be the first  supply zone after the drop.  We will look for a 3:1 reward to risk ratio.



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