USDCAD - Get on board for this short (TCT)

FX:USDCAD   U.S. Dollar/Canadian Dollar
After a rather successful trade to the downside on this pair (see link below), price has now retraced to what used to be a support level . I estimate the likelihood of this support becoming resistance now quite high and see it as an opportunity to go short again as a trend continuation trade (TCT).

The risk/reward ratio is exceptionally good. Cautious trades are looking at an approximate 2:1 for a drop down to the previous lows. More adventurous traders could shoot for extended targets being the previous resistance level around the 1.34 even handle which could become support now and presents an almost 4:1 RR.

Let me know what you think ! Constructive comments are always welcome !
Trade active: Faster than expected (thanks to the good CPI numbers) my pending short got filled.
Trade closed: target reached: It took a while and did not look good at some moments, but we finally reached targets.
What's up next ? Check the following idea :
USDCAD - Almost reached targets - Preparing for reversal
U R damn right! ^)
+1 Reply
Thanks ! Fingers crossed ! :)
arif_awan ender.genom
USDCAD, Short  upon bat completion and testing resistance!!!
A lot has to happen before that pattern completes ... but of course it's always possible. Good luck !
arif_awan arif_awan
agree, thank you
Are you going to wait till 1.38200 before you went short (in my chart the point is 1.38600) or you will short it now?

Best regards and good luck
+1 Reply
Hey Krasen, thanks for your question. I will wait till price reaches my entry point which is in the 1.3830 area ...
Hope this helps ! :)
Krasen Nico.Muselle
Yes, thanks!
Anytime :)
Joined @ 1.3832 - Lets make those PIPS!
+1 Reply
Great ! I had my pending order @ 1.3830 :)
Murtaza.mughal Nico.Muselle
But no price action has formed there yet. is it okay to go short without confirmation
+1 Reply
Nico.Muselle MOD Murtaza.mughal
That depends on your trading plan. Don't see this chart as a signal to sell, check it against your strategies and see if you have a valid reason to enter. :)
I think this one is right.but in my view the main resistant line is 1.3810 and in this 4hr candle it seems broke the resistant line but this candle just started. For me it will be safer to wait another 4hr to see the next candle reaction and hope we can get confirmation there. If the next candle confirm it is a fake break out then its good to go.
+1 Reply
hey CraigRan, thanks for sharing your opinion. It all depends on what type of trader you are. I'm quite aggressively entering my trades, some people require some more confirmation. Nothing wrong with either of the choices, both have their advantages and disadvantages and it really depends on personality I guess. :)
CraigRan Nico.Muselle
surely is ! Nice analysis you got here. Thanks for sharing to us and lets hope it wont break the resistance cos i have a CADJPY trade on going LOL.
+1 Reply
Well, it reversed where I predicted it would... now let's see if it wants to drop :)
well done!!
+1 Reply
Nico.Muselle MOD suprijadisoemoredjo
Thanks !
Well done, you are having a good month I see :)
+1 Reply
I am thanks ... Simplified my trading strategies a bit, and it's working out quite well for now :)
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