One of the charts I will be watching closely within the next few weeks is the EURCAD. This market has emerged out of consolidation by breaking below the bottom support containment line.
Now price has broken free, we can expect this market to get moving. Once of the best positions to trade from is when old consolidation containment lines are re-tested as new support or resistance. In this case we want to see the old support act as new resistance. When this sort of price action swing scenario occurs – you can catch some really powerful moves.
Watching the intra day charts would be a good idea here also to capture any strong: h4, h8, or h12 sell signals that do form off this level.
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