Using bearish divergence to build a case for reversal trading on USD/CAD with the following favouring a potential short scenario:
- resistance (3rd touch) at ~1.2800
- bearish high test close below resistance
- price reaches and closes below 1.272 Fibonacci extension
level
- Stochastic and RSI bearish divergence
entry - below low of high test
stop loss - above high of high test (placement is discretionary)
target - 20 or 50 ema, or previous horizontal level
Caution for conservative traders: Fed Chair Janet Yellen testifies at 10:00 EST
- resistance (3rd touch) at ~1.2800
- bearish high test close below resistance
- price reaches and closes below 1.272 Fibonacci extension
level
- Stochastic and RSI bearish divergence
entry - below low of high test
stop loss - above high of high test (placement is discretionary)
target - 20 or 50 ema, or previous horizontal level
Caution for conservative traders: Fed Chair Janet Yellen testifies at 10:00 EST
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.