It's good to buy USDCAD and aim for 1.3653 and 1.3838 (618 LEVEL)
SL should be below 1.3300
Comments
ChrisMark
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Hi, thanks for sharing , like your ideas , posting my view for a potential short for the pair , after a breakdown
pipstrading
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is the bearish butterfly a concern for you?
Koryphaeen
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Nobody, who has a little bit of knowledge about market behavior or structure behavior, would go long when he sees these kind of dying out patterns... Actually, 99% of the time, these patterns forecast a significant drop, you must not go any further than the rest of the chart that's visible, you can obviously see that those dying out patterns behaved as reversal almost every time... why should it behave otherwise now? can you afford to risk your money for that 1% chance of winning this trade?
sadahah
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I see this kind of strong holding above 1.3350 for several days indicate that it has very strong potential room to appreciate more.
Koryphaeen
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what you say now was true for every other situation circled in white on my chart as well, and they did break eventually... what you consider a "strong holding above" is more like an "inability to move higher", since price is determined by the balance between sellers and buyers, so when price is trapped in a pattern like this that ususally mean that for the majority of buy orders there are sell orders as well until eventually the sell orders will be more then buys... this happened many times with this pair, look left. You may have right that it is going upside, but it's rather a guess then a technical analysis, you cannot ignore the facts written in the charts by price action and this alternative is not justified by probability neither... I would rather choose a sell setup here which has a 90% probability then a buy which has only 10%... it's math, trading is mainly math based (this when you do not consider trading as gambling) ;)