USDCAD → Fall to 1.35200 or 1.40000!? Here's What We Know.
USDCAD closed a bear candle below its bull channel support last week, leaving the bulls to wonder if this is the beginning of the end! Will the US Dollar recover and bring us back into the bull channel?
How do we trade this?
We closed a candle below the bull channel, it's reasonable to be biased to short in the short term. The price may want to make contact with the 200EMA at 1.35200 where it could show support and bounce to the upside. I think a short for 100 pips to 1.35200 is reasonable with a protective stop just above the bull channel support. It would be reasonable to take some or all profit just above the 200EMA, but you could hold some and see if the price falls further.
Key Takeaways
1. Closed Candle out of Bull Channel, Bias to Short.
2. Look at 4HR chart for a test of Bull Channel Support.
3. After Sell Signal, Target TP at 200EMA 1.35200
4. Watch for Support at 200EMA
5. RSI at 41.00, below Moving Average, Supports Short.
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
How do we trade this?
We closed a candle below the bull channel, it's reasonable to be biased to short in the short term. The price may want to make contact with the 200EMA at 1.35200 where it could show support and bounce to the upside. I think a short for 100 pips to 1.35200 is reasonable with a protective stop just above the bull channel support. It would be reasonable to take some or all profit just above the 200EMA, but you could hold some and see if the price falls further.
Key Takeaways
1. Closed Candle out of Bull Channel, Bias to Short.
2. Look at 4HR chart for a test of Bull Channel Support.
3. After Sell Signal, Target TP at 200EMA 1.35200
4. Watch for Support at 200EMA
5. RSI at 41.00, below Moving Average, Supports Short.
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
-Joe Dean
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Trader Engineering Course
**Available Now at TraderEngineering.com**
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