Cross-Eyeing: Double Doji on EUR/CAD – Trade Invalidated

Trade Idea: 2011-2-24 2:35

EUR/CHF chart

Phew! It’s a good thing I didn’t enter right away! Right after I spotted the setup, the pair broke through the channel!

Now I know why my Mama (Yes, there is a Mama Cyclopip and yes, she does make the best home made bunnies) always said that patience is a virtue. As it turns out, concerns about inflation once again sparked speculation that the ECB just might raise interest rates. This boosted the euro, which is why EUR/CAD busted through the falling resistance.

In any case, my trade idea is invalidated. No harm, no foul. Besides, I still have that EUR/CHF trade from last week open and it just made a new low.

Thanks for checking out my blog and watch out for my weekly winner on Monday! If you ain’t too busy on the lines working out some trades on your fantasy basketball teams, you holler at me at MeetPips.com or Twitter! Peace out!

Trade Idea: 2011-2-23 2:05

EUR/CHF chart

What up playaz! My tradar is on again and my eye is locking in on a sweet-looking setup on EUR/CAD!

Over the past couple of weeks, EUR/CAD has been trading within a descending channel. Right now, price is right smack at the top of the channel! With Stochastic in overbought territory, and a couple of dojis, this looks like a great time to short!

But of course, I can’t just forget the fundies can I?

The euro has been on a tear lately as concerns about inflation have been sparking speculation that the ECB will be raising interest rates. Any comments, like the ones made by ECB member Yves Mersch made yesterday, have been bullish for the euro.

With Trichet speaking tonight, I think I’m gonna hang tight first and wait to see how the markets react to his speech. If Trichet comes out with a rather dovish tone, the markets could react negatively, and this could lead to a round of euro selling. If we do see a bearish candle form, I will strongly consider shorting this pair.

As for Canada, we could see some support for Loonie buying as oil has been on the rise lately. Thanks to concerns in the Middle East, oil prices have skyrocketed and are fast approaching the $100 / barrel mark. Remember, the Canadian dollar is highly correlated to oil prices, so as long as oil is on the rise, we could see the CAD stay afloat.

Before I swoop in for the kill, I’ll wait for more bearish candlesticks to confirm that the rally is really over. For now, it’s time to sit back and wait. When the time comes, I will reassess the situation and consider entering on this trade.

If I get a solid deal, then I might just turn out to be like the New York Knicks (who now have two superstars in Amare and Melo!) and have two great setups! In case you’ve forgotten, I still have that short EUR/CHF trade open, and so far, it’s doing pretty well.

  • surindm

    Thanks for the great set up. All the best with trading

  • Cyclopip

    @surindm

    Thanks man. Let’s see what happens over the next couple of candles. Good luck with your trades!

  • surindm

    Thanks for the great set up. All the best with trading

  • Cyclopip

    @surindm

    Thanks man. Let’s see what happens over the next couple of candles. Good luck with your trades!

  • jibby03

    looks like waiting for confirmation was a good idea… it blew right through the channel shortly after you noticed the trade opportunity. Nice eye though…also following your EUR/CHF trade…hope all goes well

  • jibby03

    looks like waiting for confirmation was a good idea… it blew right through the channel shortly after you noticed the trade opportunity. Nice eye though…also following your EUR/CHF trade…hope all goes well

  • Cyclopip

    @ jibby03

    You’re right, it blew right past the resistance. Time to look for another setup. Hope your trading is going well too

  • Cyclopip

    @ jibby03

    You’re right, it blew right past the resistance. Time to look for another setup. Hope your trading is going well too