Loonie BOB

Good Afternoon Dynamic Traders

Yesterday we saw some good movement on the markets - a pre Thanksgiving frenzy! SGD broke the low and is retesting the S as R so far today. There is always a chance of a FBO so ESLT would be a good tool for entry. EURGBP today has picked up strength and is attempting a BOB of the R. Let's see how the pair close tonight.

Back to the Loonie, last mentioned on Nov 20th, price has finally broken the squeeze down. Remember we have the possible 123786 chart pattern, the friendly trend in our favour and also ST giving us a false signal. Certainly the confluences suggest price should continue down but analysing the chart further suggests price may have a bumpy ride.
















First price needs to contend with the S/R zone which is intimidating price action. Should it successfully break this zone, bear in mind we're only a couple of hundred pips away from a major RN. Having said that we know good trends consistently break support levels and RN's. Of course price could find this all too difficult to tackle and bounce up.

This is a great example of making a judgment call on a trade. Despite reasons to not enter a trade it's important to gather your confluences, stack up the odds and make a decision on a trade in accordance with your TP and your rules. Please carry out your own analysis.

Here's to confident and emotion-free trading!
Sonia Molina