A SurpriseBox near the 100 sma had been formed on the Eur/Cad four hour chart. This box broke to the upside today with a bullish engulfing pattern. This engulfing pattern encased 8 previous candles that makes it very significant. A long trade position was started. A reasonable target will be the 1.36 area corresponding to the 50 sma. A more agresive trade place the target at the 1.37 area corresponding to a recent high. 1.3335 will be a reasonable stop being the recent low or a more aggressive trade will be to place the stop near the 1.3300 area corresponding to the 200 sma.
Disclaimer: I trade the patterns depicted either at the entry point stated (e.g. trading channel, breakouts) or afterward. Although my trades are based on technical analysis, trading forex is a risky activity and may produce significant monetary loss. I only make public the trades that I am considering to make, or made and the rational for them. Not intended necessarily as trading recommendations.
