Catching a Short Term Retracement on USDCAD
Updated
Entry - 1.329
Take Profit - 1.32 - 90 pips
Stop Loss - 1.33575 - 67.5 pips
I don't usually like to trade against the trend, but the reaction following the CAD CPI/retail data has me thinking it's time for a correction. The price jumped off of terrible data, but fell back below my significant level of S&R (1.329 - light blue line). The long wick on the weekly candle indicates to me selling pressure, profit taking, and trapped bulls.
The main point of trouble on this 4H chart on the way to my target is the 30EMA (green line) My stop loss is above one of the recent high, though not quite at the top of that news bump. This is a somewhat questionable trade, considering that myfxbook has 87% traders are short on USDCAD (usually best to trade on the opposite side of the majority), but the next area of strong resistance is about 200 pips away (1.345) and will take some effort to get there.
I'm not ruling 1.345 out, but I'm looking for an ebb to the flow. Target at previous area of minor resistance. Not looking to be greedy for a long ride down.
Thank you for looking!
-Zedro
Take Profit - 1.32 - 90 pips
Stop Loss - 1.33575 - 67.5 pips
I don't usually like to trade against the trend, but the reaction following the CAD CPI/retail data has me thinking it's time for a correction. The price jumped off of terrible data, but fell back below my significant level of S&R (1.329 - light blue line). The long wick on the weekly candle indicates to me selling pressure, profit taking, and trapped bulls.
The main point of trouble on this 4H chart on the way to my target is the 30EMA (green line) My stop loss is above one of the recent high, though not quite at the top of that news bump. This is a somewhat questionable trade, considering that myfxbook has 87% traders are short on USDCAD (usually best to trade on the opposite side of the majority), but the next area of strong resistance is about 200 pips away (1.345) and will take some effort to get there.
I'm not ruling 1.345 out, but I'm looking for an ebb to the flow. Target at previous area of minor resistance. Not looking to be greedy for a long ride down.
Thank you for looking!
-Zedro
Trade active
Well, obviously this trade has been active for about 24-hours, but I wanted to provide an update. I had made the made the mistake of entering a trade too early. It's usually best (for me) to wait to get into a position until Tuesday when the markets had time to establish some movement.Anyway, the trade went against me for around -25 pips before turning back around. The price couldn't retake a new high, which is a good sign for my position. USDCAD is in a tight range, waiting for some news. The 30EMA is still guiding this PA and will make or break this trade.
Trade closed manually
USDCAD is bonkers. Manually closing this one with only a couple of pips gain around 1.3288. Sounds like some of the harshest of Trump's tariff plans against China aren't moving forward, providing a dip in USD.
We are currently in an ascending wedge, which has finally been broken by this news, but the 30EMA and Ichimoku Cloud on the 4-hour chart make me unsure where tis pair is going in the near-future. better to get to now and wait for a more clear break in either direction.
-Zedro
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