FX:USDCAD U.S. Dollar/Canadian Dollar
Switching over onto the daily time frame, we have a very simple chart setup. The first is the trend-line breakout. I prefer more of a DeMark style trend-line plot. I'm not really looking for a trend-line retrace or correction simply because the rally appears almost exponential and so I do not see the immediate benefit of predicting an ascending trend-line retracement so far away. My key takeaway here is the downside pressure that's looking to bring this pair lower. The initial leg down has ended and we are currently stalling with a slight pull back before the next major wave sell off begins. The two horizontal rays served as my indecision zones where I viewed the market as not having a clear direction. Current trade setup is to sell into this second leg with a stop just above this horizontal zone. An additional confirmation is the 60-EMA serving as a dynamic level. This exponential setting is also another personal preference of mine. It works very well on this pair and price is currently resting just below this line. This is another expectations for a further downside movement.
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