USD/CAD Trade Idea

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. We got stoped out last time but now we’re seeing big momentum to the downside so we look for an entry again. Price created a new high on the daily chart at 1.295 and dropped 500 pips since then. Price also respected the support at 1.258 but it broke through and now we’ll enter a short trade a the retest of the prevously created support.

Trade Plan

Set sell limits at 1.2578 or enter at market price when price goes into the resistance zone at that level. Stop loss goes above the zone at 1.26 with the first take profit at 1.2435. When the price breaks below 1.25 put stop loss at break even. We book profits at each support.

Risk Management

Only risk 1% per trade. TP1 at 1.2435 is a RR1:6.8, TP2 at 1.23 is a RR1:13.2.

Broker that I use

ICMarkets