They don’t come much better than this, and ironically I was actually doing some longer term analysis, when I came across this fantastic set up in the EUR/CAD on the fatman indicator, and all we need to to do now is to be patient.
As we can see, the Euro, the green line, is climbing fast and is now well extended into the over bought area, whilst the Canadian dollar, the yellow line, has descended equally sharply, and is now well over sold and therefore likely to strengthen in due course, so a clear trading opportunity is being signalled. All of this is on the 60 minute indicator, so we are looking at trading on the 15min or possibly the 30 minute chart.
A check on our charts reveals that the pair are now just beginning to turn from the recent bullish trend, back to a bearish trend. The five minute chart has already started to turn, with roadkill giving us an aggressive entry as the trend turns bearish, whilst on the slower timeframes, both the 15 minute and the 30 minute charts are just starting to reflect the market, with both heat maps now changing colour from green to dark green and the short term trends changing to white, as bullish momentum slows and begins to turn bearish.
Now all we need to do is wait, and be patient, and decide which chart timeframe to use for our entry, and whether to take an aggressive entry, or to wait for a more conservative signal. Whichever we decide to take, this looks like a perfect set up, and one to watch during this evening’s trading session.