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U.S. Dollar / Canadian Dollar
Long

USDCAD watch for a buy

By TimStuyts
Updated
We saw the first wave of the correction end at 1.318, currently price is unfolding in the shape of a third corrective wave. Since I need to determine whether this third corrective wave is over or not, I need to look at that third wave structure and not at another structure because that might show you a bearish break where in fact there is no bearish break yet. Only if we see a break and consolidation I will adjust and look for sells, until that moment I still favor my scenario where price needs to test 1.34 first.

Updates will follow

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Note
On the 1 hour chart we now also see divergence, watch for a reversal pattern and buy opportunity.
But we need to wait for a clear reversal pattern because price might extend lower. Only f we see price make a consolidation I will shift bearish. But I will update again.
snapshot
Note
The chart shows two almost identical price structures within this consolidation of larger degree. So we either see that reversal for a move towards 1.34 soon, or we consolidate and break lower once again which would result in 5 waves lower and therefore likely impulsive.
snapshot
Note
I'm in USDCAD with two positions at the moment. Trade 1 is at break even so I trade according to my risk management rules. I can take profit for a nice risk/reward but I want to see the move higher towards 1.34. Since my entry levels were good I rather get stopped out at break even than trade risk/reward 3/1 when there is 30/1 on the table for my first entry.
If I get stopped out I will look for another entry and therefore need to stay focused on this pair and not trade many pairs at the same time. Remember that if the low is in place for that leg higher many more trades will present themselves and I like to keep adding to my current positions.
snapshot
TimStuyts

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