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weekendanalyst
Apr 14, 2024 12:37 PM

USDCAD | LT Short D1 | Oil to power CAD Strength Short

U.S. Dollar/Canadian DollarFXCM

Description

Pair: FX:USDCAD
Timeframe: D1 - Long Term (LT)
Direction: Short

Technical Confluences for Trade:
- Stochastics are in Overbought Conditions on D1, H4 and H1 time-frames
- Price action is at the top-end resistance of a parallel channel
- Horizontal trendline looks like a supply zone across few periods
- Aiming for the 32.8% Fibo Retracement with 23.6% as the TP 1 level

Fundamental Confluences for Trade:
- A strong oil story from ongoing geopolitical risks is a strong story for CAD's economy to remain their hold on interest rates while US's reflation story has been priced in by markets
- Risk is further war escalation from the Israel-Iran tension which continue the rush to safe-havens like USD or JPY.

Suggested Trade:
Entry @ Area of Interest 1.3750 - 1.3850
SL @ 1.3898
TP 1 @ 1.3640 (TP Half-Position & move SL to Entry level for B/Even once TP1 is achieved)
TP 2 @ 1.3567
Risk-to-Reward @ Approx. 2.08 (Depending on Entry Level)


May the pips move in our favor! Good luck! :D

*This trade suggestion is provided on an advisory basis. Any trade decisions made based on this suggestion is a personal decision and am not responsible for any losses derived from it.

Comment

Resistance Trendlines are holding up at the moment. Good entry if you have yet to enter. SL levels remain the same.

Comment

Price is close to TP1 levels. Can TP for half the position and move S/L to Breakeven levels.
Comments
ifeanyichukwu_E
I don't see price reaching your take profits level, I will keep an eye out for 1.4000 price
weekendanalyst
@merrimen, yeah but no worries, currently the trade is considered Breakeven already the SL is moved to Breakeven and half position closed. If it reverses, may create a better next entry :D
AlloysK
Good idea. Thanks for sharing.
weekendanalyst
@AlloysK, you are welcome.
xoxo45
Nice breakdown, especially with fundamental confluences for trade and technical part, I'm also eyeing this setup :-)
weekendanalyst
@xoxo45 thank you for your support.. do share ideas; always happy to discuss
TheFxAce
Totally onboard with this strategy, let's secure our positions.
weekendanalyst
@TheFxAce glad to have your support on this! 👍
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