USDCAD → Fell HARD to 135.000! Will We Bounce Here?USDCAD fell out of the bull channel as predicted from last week's analysis and hit the profit target of 135.500. We are now sitting on the 200EMA with no sign of support, do we short?
How do we trade this? 🤔
We do not short! We're on potential support, the RSI is at 32.00, we haven't had a good pullback in 10 bars, best to wait on the sidelines. What we *should* be looking for is a bounce off of the 200EMA as previous price action has shown. With a strong bull signal and confirmation bar closing on or near their highs, it would be reasonable to long at this level.
💡 Trade Idea 💡
Long Entry: 1.35470
🟥 Stop Loss: 1.34655
✅ Take Profit: 1.37100
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Breakout of Bull Channel, Bias to Short.
2. Target Short TP at 200EMA 1.35200 Achieved.
3. Look for a test of Daily 200EMA Support.
4. Long if Bull Signal and Confirmation Candle Close.
5. RSI at 32.00, below Moving Average, Supports short-term Short.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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