USD/CAD Short Setup – Break of Daily Demand + Textbook Triangle Unwind
This short is built off both macro fundamentals and multi-timeframe technical precision.
Daily Chart:
USD/CAD has been steadily breaking structure to the downside. Yesterday's close was significant — we broke below a major daily demand zone at 1.38221, signaling a shift in longer-term sentiment.
Today’s price action has already retested yesterday’s high into that broken zone — a classic break-and-retest setup.
4H Chart:
A clear 5-wave triangle correction is printing — text-book stuff. We’re nearing the breakout point. Price is pressing against the lower boundary, and momentum looks ready to shift.
A potential Evening Star pattern is forming right now, supported by an inside bar and a follow-up bearish hammer — a stacked reversal signal.
1H Chart:
Structure confirms the 4H — all signs point toward a correction completing and a new impulsive leg down beginning.
Fundamentals:
Later today, the U.S. Flash Manufacturing PMI is expected to show contraction — a negative for the dollar. If the data misses expectations, it could amplify the bearish move on USD/CAD.
We’re also tracking oil closely — further CAD strength via crude would accelerate the downside here.
Trade Plan:
Entry: Current area near the 1.382 retest
SL: Above triangle high
TP1: 1:1 R:R – partial take profit (75%)
TP2: Let the remaining 25% run with structure-based trailing
If the setup confirms post-PMI, this could be a strong follow-through play after a major HTF breakdown.
This short is built off both macro fundamentals and multi-timeframe technical precision.
Daily Chart:
USD/CAD has been steadily breaking structure to the downside. Yesterday's close was significant — we broke below a major daily demand zone at 1.38221, signaling a shift in longer-term sentiment.
Today’s price action has already retested yesterday’s high into that broken zone — a classic break-and-retest setup.
4H Chart:
A clear 5-wave triangle correction is printing — text-book stuff. We’re nearing the breakout point. Price is pressing against the lower boundary, and momentum looks ready to shift.
A potential Evening Star pattern is forming right now, supported by an inside bar and a follow-up bearish hammer — a stacked reversal signal.
1H Chart:
Structure confirms the 4H — all signs point toward a correction completing and a new impulsive leg down beginning.
Fundamentals:
Later today, the U.S. Flash Manufacturing PMI is expected to show contraction — a negative for the dollar. If the data misses expectations, it could amplify the bearish move on USD/CAD.
We’re also tracking oil closely — further CAD strength via crude would accelerate the downside here.
Trade Plan:
Entry: Current area near the 1.382 retest
SL: Above triangle high
TP1: 1:1 R:R – partial take profit (75%)
TP2: Let the remaining 25% run with structure-based trailing
If the setup confirms post-PMI, this could be a strong follow-through play after a major HTF breakdown.
Note
Timing of USD news was mistaken by me. Paris time and USD time difference on my labtopTrade closed: stop reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.