I inserted this trade when I came back home from work. I am speaking about this eurcad daily chart.
Oil has been going up and this chart has been generally showing a bearish trend for the euro compared to the cad.
So far we have been provided with lower lows and lower highs since December and price is at resistance right now.
The stochastic indicator has crossed below the 80% level acting therefore as a level of confluence for a bearish move.
Another aspect I like is that price moved below the 50 day moving average. As long as price manages to do so then I do prefer to keep a bearish bias.
A possible target might be the next level of resistance which can be seen at number 6.
The next indicator that needs to confirm the move is for Macd to cross below its zero line.
Well my stop loss is in place and I will let the trade run and let the market do its thing.
BEST OF PIPS