Short USDCAD
Updated
First of all, the price seems to be precipitously toeing the edge of a cliff, but it has not fallen off yet.
The MACD and RSI have turned the corner and both appear to be coming down. However, bear in mind that the price has not responded so far and we may be in the midst of a measured move (eg, a flag, pennant, etc). For comparison and contrast, EURUSD and GBPUSD have risen over the past hours while NZDUSD has not, so it's not a sign of particular strength that CAD has been unable to strengthen against the dollar the way the euro and pound have. If the price fails to respond while the indicators continue to fall, the indicators are likely resetting in that once they appear to go back up, price will likely go with it. Therefore, price needs to respond soon before the indicators reset or that tells us short is not the way to go here and we almost certainly want to go long.
Moreover, it should be running advice for the moment to keep on an eye on the 10-year USD yield. If you think it will continue to rise, then, again, short is not the way to go and long certainly is.
The MACD and RSI have turned the corner and both appear to be coming down. However, bear in mind that the price has not responded so far and we may be in the midst of a measured move (eg, a flag, pennant, etc). For comparison and contrast, EURUSD and GBPUSD have risen over the past hours while NZDUSD has not, so it's not a sign of particular strength that CAD has been unable to strengthen against the dollar the way the euro and pound have. If the price fails to respond while the indicators continue to fall, the indicators are likely resetting in that once they appear to go back up, price will likely go with it. Therefore, price needs to respond soon before the indicators reset or that tells us short is not the way to go here and we almost certainly want to go long.
Moreover, it should be running advice for the moment to keep on an eye on the 10-year USD yield. If you think it will continue to rise, then, again, short is not the way to go and long certainly is.
Trade active
As you can see from the above chart, the price is in a measured move and the indicators on a finer time-frame seem to merely be resetting which certainly does not bode well for the short side. I have included a line that to me would in my mind signify a breakout to the upside and would likely entail my switching sides.
Trade closed manually
I'm out at 1.2843 for a 15 pip loss
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