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Forex-usdcad

USD/CAD Flag Trap For Downside Flow Hello Fellow Trader! 4 - hour time frame showing lower lows made on the USD/CAD which possible zone to fill at 1.31140. Flag pattern possibly trapping long retail plays with high probabilities for downside pressure. Holding below 50 EMA, 200 EMA on both 4 hour and 15 minute time frames. Key Points: - Price holding below the 200 EMA - Price hugging below the 50 EMA - RSI below 50 Mid-point - IF: Fails at 1.31820. Provides a second opportunity to short. Wait for rejection candle. Key Levels: Support – 1.31370, 1.31140 Resistance – 1.31820, 50 EMA, 200 EMA Entry Zone: Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals. Optimal Entry – 1.31650 Supporting Entry – 1.31570 Candle Reversals for entry - Bearish Shooting Star - Bearish Engulfing - Bearish Dark Cloud Cover The Risk: As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios. If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital. IF: Price breaks above 1.31751 level and violates 50 EMA– this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter. Reward / Reward Targets: Optimal Entry 1.31650– Target 1 1.31370 = 2.7x Reward to Risk Optimal Entry 1.31650 – Target 2 1.31140 = 5x Reward to Risk Supporting Entry 1.31570 – Target 1 1.31370= 1.2x Reward to Risk Supporting Entry 1.31570 – Target 2 1.31140= 2.3x Reward to Risk
Short
by tradetheday
USDCAD | WEEKLY PERSPECTIVEThe USD/CAD pair struggled to make a decisive move in either direction after the macroeconomic data releases from Canada and the United States on Friday - 31st July 2020. With 90pips in our direction from my last week publication (see link below for reference purposes), a possible rally continuation is looming as we experience a Breakout off of our Trendline and Resistance @ 1.33700 during the course of last week. Tendency: Uptrend ( Bullish ) Structure: Breakout | Channel | Reversal Pattern Observation: i. The fall of USD since mid-July 2020 appears to stall at 1.33600 zone (Buying Pressure zone) as the price continues to find it difficult to break further down. ii. The spring of a Bullish candle (Breaking out off of my Trendline) later in the week is a sensitive sign that emphasizes Buyer's strength at this juncture in the market. iii. Looking out for completion of retracement from Engulfing run in anticipation of a rally in the following week(s). Trading plan: BUY confirmation with a minimum potential profit of 100 pips. Risk/Reward: 1:2. Potential Duration: 2 to 7 days NB: This speculation can be considered to make decisions on lower timeframes. Watch this space for updates as price action is been monitored. NirvanaForex Risk Disclaimer: Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Long
by darcsherry