DRFX FOREX SWING TRADING

This pair has started to break out above the latest Pennant setup on the Daily Chart which could set the stage for strong Pip gains in the days ahead. Before this takes place, however, we would need to see a stronger Bull Candle (Normal Candle) than the one that has appeared at the end of Monday's session.  DAILY CHART - WEAK CANDLE BREAKOUT Once we have this signal, we will be able to enter with greater confidence that another 200-Pip trade will be there for the taking. The expected rally would continue the momentum of the major break out above the Outer Downtrend Line, which started a few weeks ago on January 21, 2015. DAILY CHART- OVERALL DOWNTREND DAILY CHART- START OF TREND LINE BREAK As is typical of the Currency Market, breaks of major barriers such as these tends to take place with a break of a large Consolidation - a Pennant in this scenario. What this means is that any breakout from the smaller Pennant Setup would be supported by the m

Having already rallied sharply by over 1500 Pips in just 2 months, we could still see further gains for the USD if a strong breakout takes place from the Daily Chart's  Pennant  . The pair is currently hovering above the Resistance of this Pennant, which was formed following that sharp breakout that started in October of 2014. Pennants and Ranges, which are setups that reflect low levels of liquidity, are usually formed after these aggressive market movements.  DAILY CHART - PENNANT SETUP This current Pennant setup is taking place within the context of a strong uptrend, which would provide added momentum for a Bullish Breakout. DAILY CHART - UPTREND LINES Taking a closer look at the Pennant, we can see that there has been a temporary breakout above Resistance that was quickly met by a bearish pullback. This has led to the formation of a Counter Trend Line (CTL) setup which, if broken by a strong enough Bullish Candle, will be the signal for us to start bu