USD/CAD - We need short retracement
Updated
This should be a short-term trade. I'm convinced the market has no more power to push the price up. We need to see a correction with a good potential.
After bad data from CAD GDP last week we saw nice bounce from the bottom of bullish trend channel and also move out from Falling Wedge (bullish sign). Now the market grow so fast so I guess there could be a little retrace. Why?
We can see market tested the previous swing High, the strong S/R area and we can expect retrace.
The next is building Rising Wedge (bearish pattern) in lower Time-frame.
RSI bearish divergence on lower Time-frame.
The good entry should be valid after breakdown of Rising Wedge or after retesting of this pattern. But if you want you can do agressive short with good SL (but without confirmation is high risk).
Where could market bounce upwards once again?
The strong support area n.1 which is strong and that should be our target. The Bigger one is support n.2, so the neckline (or trendline - blue), which market breakout upwards. We need to test it.
SHORT ZONE:
Now (not recommend - high risk) -> 1.337-1.336
Safer short -> after breakdown of Rising wedge or it's test
TP area:
Support zone n.1 (1.331-1.328)
Support zone n.2 (1.327-1.3255)
SL -> above red S/R area (1.3385)
This could be a good trade with nice RRR, but don't forget, you trade on your own risk and this is only my point of view not investing advice.
After bad data from CAD GDP last week we saw nice bounce from the bottom of bullish trend channel and also move out from Falling Wedge (bullish sign). Now the market grow so fast so I guess there could be a little retrace. Why?
We can see market tested the previous swing High, the strong S/R area and we can expect retrace.
The next is building Rising Wedge (bearish pattern) in lower Time-frame.
RSI bearish divergence on lower Time-frame.
The good entry should be valid after breakdown of Rising Wedge or after retesting of this pattern. But if you want you can do agressive short with good SL (but without confirmation is high risk).
Where could market bounce upwards once again?
The strong support area n.1 which is strong and that should be our target. The Bigger one is support n.2, so the neckline (or trendline - blue), which market breakout upwards. We need to test it.
SHORT ZONE:
Now (not recommend - high risk) -> 1.337-1.336
Safer short -> after breakdown of Rising wedge or it's test
TP area:
Support zone n.1 (1.331-1.328)
Support zone n.2 (1.327-1.3255)
SL -> above red S/R area (1.3385)
This could be a good trade with nice RRR, but don't forget, you trade on your own risk and this is only my point of view not investing advice.
Note
Nice RSI bearish divergenceNote
Wait for breakdown of Rising Wedge. We need valid confirmation.Trade closed manually
Our entry has not been filled, so trade was not valid.
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