EURCAD 4-22-07: Trade Setup

The EURCAD is going through some consolidation time right now but it is a good time for a trade setup. Once it clears the consolidation, the bearish trend will continue if price breaks through our entry value.
Here is a summary of the Ichimoku value:

  • Chikou Span: Bearish and not running into price soon.
  • Kumo Price: Price below Kumo cloud.
  • Kiju Sen/Tenkan Cross: Bearish
  • Kumo Future: Fresh Bearish
  • Kijun Sen: Flat and above Kumo. This will cause some consolidation. Entry will be key.

The entry was choosen based on a Chikou Span support value which is the bottom of the consolidation area. I am using a 5 PIP buffer for entry.
Plan

  • Strategy: Position Trade
  • Sentiment: Bearish
  • Entry: 1.5227
  • Stop: Based on Kijun Sen (daily) once entered. If the following scenerio occur then the 240 timeframe Kijun Sen will be used once entered:
    • Price is far away from the Kijun Sen and we want to perserve profits.
    • Weekend is approaching and the values are not healthy
  • Caution Note: Huge Kumo Shadow so expect various consolidation period especially at 1.5109.

EURCAD Daily 4-22-07
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About the Author Manesh Patel