This week we covered two setups as they formed on the daily charts of the EURGBP and USDCAD.
EURGBP DAILY CHART
Earlier in the week we discussed a live 2 bar reversal that had formed on the daily chart of the EURGBP. To read that post see here: EURGBP 2 Bar Reversal. From this setup price popped higher and went onto test the near term resistance. This has now given the traders who took this setup the chance to take profit or at the minimum protect capital and look for bigger profits should price pop higher through resistance.
USDCAD DAILY CHART
The setup we discussed this week on the USDCAD daily chart was a bearish engulfing bar that formed up at a swing high and rejecting resistance. To read the original post see here: USDCAD BEEB. In that post we highlighted the fact that price should it break lower was trading straight into the important Very Big Round Number of 1.000. It was no surprise to see that when price did break lower it moved straight to the VBRN and popped through moving to a low of 0.9999 before rejecting and moving higher. This highlights the importance of keeping an eye out for these major round numbers and trying to trade away rather than into them.
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