potentially significant breakdown on the USDCAD weekly chart—if price has decisively broken below a long-standing ascending trendline, that can be a strong signal of trend reversal or deeper correction.
Let's assess your trade setup:
---
🟦 Trade Plan Summary
Entry: Short at 1.3700 (current position)
Trigger: Confirmation of trendline break
1st Target (TP1): 1.3020
2nd Target (TP2): 1.2500
Stop Loss (Suggested): Ideally somewhere above 1.3750–1.3800, depending on volatility/tolerance.
---
📊 Technical Breakdown
1. Trendline Break (Weekly):
If the trendline held since 2021–2022 was broken, this confirms a structural shift.
Weekly closes below the trendline reinforce the signal; daily retests that reject it would strengthen your case.
2. 1.3020 Target Zone:
This is a strong support area, previously tested multiple times (May 2023 and early 2022).
It aligns with fib retracement zones and horizontal demand.
3. 1.2500 Target:
A more aggressive downside target, likely needing a strong USD selloff or major CAD strength (e.g., oil rally or BoC hawkishness).
---
🔍 Key Considerations
Risk-Reward: From 1.3700 to 1.2500 is a 1,200 pip move. Even to 1.3020 gives ~680 pips. Depending on SL, this can be a 3–6:1 RR.
CAD Drivers:
Crude oil strength boosts CAD.
Watch Bank of Canada rate decisions and inflation data.
USD Factors:
A shift in Fed tone toward rate cuts will weaken USD.
Upcoming NFP, CPI, and Fed meetings are key.
---
✅ Trade Management Tip
If price breaks decisively below 1.3600 with strong volume and doesn't reclaim that level, consider:
Scaling in (if not fully positioned),
Trailing stop loss as it approaches 1.3300 (mid-support),
Taking partial profit at 1.3020 and letting the rest ride to 1.2500.
Would you like a chart analysis or trade calculator for this setup? I can also generate a chart with key levels marked if you upload your chart screenshot or describe the trendline.
Let's assess your trade setup:
---
🟦 Trade Plan Summary
Entry: Short at 1.3700 (current position)
Trigger: Confirmation of trendline break
1st Target (TP1): 1.3020
2nd Target (TP2): 1.2500
Stop Loss (Suggested): Ideally somewhere above 1.3750–1.3800, depending on volatility/tolerance.
---
📊 Technical Breakdown
1. Trendline Break (Weekly):
If the trendline held since 2021–2022 was broken, this confirms a structural shift.
Weekly closes below the trendline reinforce the signal; daily retests that reject it would strengthen your case.
2. 1.3020 Target Zone:
This is a strong support area, previously tested multiple times (May 2023 and early 2022).
It aligns with fib retracement zones and horizontal demand.
3. 1.2500 Target:
A more aggressive downside target, likely needing a strong USD selloff or major CAD strength (e.g., oil rally or BoC hawkishness).
---
🔍 Key Considerations
Risk-Reward: From 1.3700 to 1.2500 is a 1,200 pip move. Even to 1.3020 gives ~680 pips. Depending on SL, this can be a 3–6:1 RR.
CAD Drivers:
Crude oil strength boosts CAD.
Watch Bank of Canada rate decisions and inflation data.
USD Factors:
A shift in Fed tone toward rate cuts will weaken USD.
Upcoming NFP, CPI, and Fed meetings are key.
---
✅ Trade Management Tip
If price breaks decisively below 1.3600 with strong volume and doesn't reclaim that level, consider:
Scaling in (if not fully positioned),
Trailing stop loss as it approaches 1.3300 (mid-support),
Taking partial profit at 1.3020 and letting the rest ride to 1.2500.
Would you like a chart analysis or trade calculator for this setup? I can also generate a chart with key levels marked if you upload your chart screenshot or describe the trendline.
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Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
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Gold Signal's with proper TP & SL for high profit opportunities..
Related publications
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.
📲 Join telegram channel free ..
t.me/Trade_With_Gold_King005
Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
t.me/Gold_Analysis_Experiment
Gold Signal's with proper TP & SL for high profit opportunities..
t.me/Trade_With_Gold_King005
Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
t.me/Gold_Analysis_Experiment
Gold Signal's with proper TP & SL for high profit opportunities..
Related publications
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.