USDCAD - Intra Day
USD/CAD Potential Trade Analysis
Setup:
Area of Interest: Asia High Zone
Psychological Level: Near 1.38000
Trade Direction: Sell
Risk to Reward Ratio: 1:3
Stop Loss: 10 pips
Take Profit: 30 pips
Analysis:
The current chart shows a potential selling opportunity at the identified resistance zone, which aligns with the psychological level near 1.38000. Additionally, the Asia High provides a strong confirmation for potential price resistance.
Trade Execution Plan:
Entry Point: Enter a sell position when the price reaches the red resistance zone near the Asia High level.
Stop Loss: Place the stop loss 10 pips above the entry point to manage risk.
Take Profit: Set the take profit target 30 pips below the entry point, maintaining a risk to reward ratio of 1:3.
Rationale:
The psychological level near 1.38000 is significant and often acts as a resistance level.
The Asia High provides additional confirmation for potential price resistance.
A 1:3 risk to reward ratio ensures that the trade can yield a significant profit if the price reacts as expected.
Monitoring:
Price Action: Observe how the price behaves as it approaches the red resistance zone.
Volume: Increased volume at this level can provide additional confirmation of a potential reversal.
Session Changes: Be aware of the timing of different trading sessions, as liquidity and volatility can change.
This setup offers a high probability of success due to multiple confirmations and a favourable risk to reward ratio, making it a viable trade opportunity based on the current market conditions.
Setup:
Area of Interest: Asia High Zone
Psychological Level: Near 1.38000
Trade Direction: Sell
Risk to Reward Ratio: 1:3
Stop Loss: 10 pips
Take Profit: 30 pips
Analysis:
The current chart shows a potential selling opportunity at the identified resistance zone, which aligns with the psychological level near 1.38000. Additionally, the Asia High provides a strong confirmation for potential price resistance.
Trade Execution Plan:
Entry Point: Enter a sell position when the price reaches the red resistance zone near the Asia High level.
Stop Loss: Place the stop loss 10 pips above the entry point to manage risk.
Take Profit: Set the take profit target 30 pips below the entry point, maintaining a risk to reward ratio of 1:3.
Rationale:
The psychological level near 1.38000 is significant and often acts as a resistance level.
The Asia High provides additional confirmation for potential price resistance.
A 1:3 risk to reward ratio ensures that the trade can yield a significant profit if the price reacts as expected.
Monitoring:
Price Action: Observe how the price behaves as it approaches the red resistance zone.
Volume: Increased volume at this level can provide additional confirmation of a potential reversal.
Session Changes: Be aware of the timing of different trading sessions, as liquidity and volatility can change.
This setup offers a high probability of success due to multiple confirmations and a favourable risk to reward ratio, making it a viable trade opportunity based on the current market conditions.
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