Sebatrader1
Short

Strong Bearish USDCAD Trend: Reversed Flag Pattern

FX:USDCAD   U.S. Dollar / Canadian Dollar
Hi guys,

Check out my analysis on the USDCAD

The dollar is getting weaker and weaker and we should take advantage of this strong downward movement. Of course, it is very important to wait for the right entry point and not doing things in a rush.

Here as usual the trade setup:
- A nice flag has been formed followed by a huge engulfing candle on the upper edge of the "flag channel", which it might anticipate the eventual breakout of the pattern.
- We are in a free fall considering there are no major support, therefore this might be a nice entry point
- Put a SELL LIMIT on the breakout of the "flag channel", few pips below the previous support
- Take profit 1 on the next daily support (first black line)
- Take profit 2 on the further support (second black line)
- Risk reward around 1:1.7

Hope you enjoyed my analysis.

Feel free to share your thoughts or leave a like.

Cheers,

Sebastiano