Six Consecutive Red Daily Candles for USD/CAD | Vantage FX

Six Consecutive Red Daily Candles for USD/CAD

August 16, 2016

Six consecutive red daily candles for USD/CAD and a spike up in Oil has caught the attention of Forex and Commodity traders alike.

USD/CAD Daily:
Click on chart to see a larger view.Click on chart to see a larger view.

The above USD/CAD daily chart was one that Oscar Goullet brought up on Twitter yesterday and for me, was too good to ignore.

As you can see, price is in a higher time frame bullish trend on the weekly chart (you can zoom out yourself), while sitting inside a bullish channel on the daily.

USD/CAD 30 Minute:
Click on chart to see a larger view.Click on chart to see a larger view.

Intra-day however, price has pulled back to channel support.

The risk:reward on the scenario I’ve drawn onto the above 30 minute chart is quite tight and is one trading idea on the currency pair. If price can break the magenta line, a re-test of short term support would coincide with channel support being re-activated, and looks the spot for an entry.

As we’re trading in the direction of the overall trend, once price has tucked back into the original bullish channel, the upside on the higher time frames opens up considerably.

OIL 4 Hourly:
Click on chart to see a larger view.

Just a quick footnote following on from some headline expectations in Oil that we had on Friday.

Oil has continued its march North into resistance where we will look for price to take its first breather. Once again, this is the higher time frame level to look to manage your risk around.

However, attached to the above Oil chart you can see we have included the Correlation Matrix found in the Vantage FX Smart Trader Tools add-on for MT4 which shows an extremely high reading. With the USD/CAD scenario looking like it’s going to be the one to play out first, managing correlation risk also comes into play and taking multiple highly (inversely) correlated trades isn’t sound risk management.

Vantage FX Smart Trader Tools Add-on

Rediscover the MetaTrader 4 Platform by deploying the most comprehensive upgrade to your MT4 experience today and take your trading further with Vantage FX.


On the Calendar Tuesday:
AUD Monetary Policy Meeting Minutes

EUR German ZEW Economic Sentiment

CAD Manufacturing Sales m/m
USD Building Permits
USD Core CPI m/m

Trade Forex with Australian Forex Broker, Vantage FX.

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.




Fast & Easy Account Opening Start Now!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!
Forex Promotions

Open a live account today to gain exclusive access to our 8 Forex Promotions. 

Find out more.