USD/CAD Trade Idea
USDCAD trade 150821

Timeframe

4H Chart – Day trade/swing trade idea

Analysis

Overall trend on USD/CAD is bearish so we’re looking to go short. We’ve seen some bullish moves over the last couple of months which is expected after long periods of continuous downside but after the price reached 1.28 the bears managed to take controll again and we broke the temporary bullish trendline. On the 4H timeframe we can also see price created a double top at the 1.258 zone and price rejected it as expected. Now the price has consolidated at the 1.252 zone and was not able to break any higher providing us with a nice short opportunity and continue the wave down. If we see any spikes above our stop loss we simply enter a new short at the next valid resistnce level and continue with the same trade plan.

Trade Plan

Enter a short trade around the current price action with a stop loss above the current resistance level at 1.25360. Once the trade start to approach our first take profit zone put stop loss at break even and take profit at each next support level.

Risk Management

Only risk 1% per trade. TP1 at 1.24346 is a RR1:3.67, TP2 at 1.22985 is a RR1:9.99.

Broker that I use

ICMarkets