Canadian Dollar – Time To Become Bearish? AUD CAD; GBP CAD; USD CAD

Canadian Dollar – Time To Become Bearish? AUD CAD; GBP CAD; USD CAD

I’ve been itching to post about my long term outlook for GBP:CAD for ages now and have been running a couple of small trades on and off ┬áthe long side for a couple of Months now but haven’t reached the level of confidence required to really jump into these in size or with real commitment.

Now that might be changing and here I present you with a trio of trading opportunities to make the most out of a bearish Canadian Dollar.


It’s traded this daily range for ages now, almost 18 Months in fact, but finally we are seeing a pattern that looks like it may have a massively bullish outcome.

Where you enter this trade would depend on your risk parameters with the obvious entry being on a confirmed breakout of this huge daily range, however, I’ve been inclined to take the risk and enter a little early as I have a strong belief in the outcome.

For now, GBP:CAD is showing a succession of higher lows with each creating smaller and smaller rallies into resistance. It is my belief this resistance will be broken in 2012 and the resulting rally will be fierce:


A few Months back I had a stunning trade on this pair which gave results way beyond my expectations. Since then price has consolidated and we now have the formation of a triangle which could very well be a Bull Flag. I will look to enter this trade either on a pull back to support, or alternatively on a confirmed break of the annotated flag:


If you are a short term trader this is certainly an attractive set-up to watch in view of entering a long position on the break of the bullish consolidation shown in this 4 hourly chart:

Longer term things look equally positive as the Australian Dollar has been trending upwards against the Canadian Dollar for a solid 4 years and doesn’t show any obvious signs of reversing:

I will update on any new positions I take on these pairs in the comments section under this post.


  • RS2OOO
    Posted at 22:31h, 19 December

    Entered the GBP:CAD swing long today at 1.6062

  • Pingback:A Few Trading Ideas From My Watchlist; GBP, USD, CAD, AUD
    Posted at 22:56h, 20 December

    […] This particular chart is an update the the swing trade detailed in the previous post; […]

  • Pingback:Weekly Swing Trading Round Up; 25th December 2011
    Posted at 22:48h, 25 December

    […] GBP:CAD was stopped out for a 70 pip loss. I still have belief in the big picture but if I’m to continue my aggressive approach of trying to pre-empt the move then I will have to run wider stops, the alternative being to wait for confirmation of a break-out before entering. […]

  • Pingback:Weekly Swing Trading Round Up 7th January 2012
    Posted at 18:02h, 07 January

    […] but these things equal out in the end because you receive interest payments on long AUD positions.AUD:CAD long goes into the Weekend also showing around 30 pips profit. As you’ll already know, I’d […]

  • Pingback:This Week's Trading Review With Charts
    Posted at 00:46h, 14 January

    […] over each swing trade taken or exited over the last Week.AUD CADOriginal analysis can be found here.I liked the daily chart even at the time I exited the trade but in view of the higher than average […]