USDCAD continues to show strong signs of bullish momentum.
The market has been consolidating between this range at 1.339 and 1.35 (marked by the blue rectangles)
Even though Fridays candle shows a strong rejection from the sellers at resistance, overall my bias is still very bullish.
Instead of looking to go long at the break of resistance (1.35) i’d rather wait for the support of the consolidation range to be tested and trade within the range.
I’ll be closely monitoring the market if 1.34 is tested and possibly take a buy if price action looks good. The good thing about this entry is the stop loss could be placed below the support (at around 1.3375) which would allow for a great risk reward.
Also note the DXY looks to be topping with resistance at 98.15 so we could see more consolidation before an eventual break of 1.35 on USDCAD.
The Trading Edge
Even though Fridays candle shows a strong rejection from the sellers at resistance, overall my bias is still very bullish.
Instead of looking to go long at the break of resistance (1.35) i’d rather wait for the support of the consolidation range to be tested and trade within the range.
I’ll be closely monitoring the market if 1.34 is tested and possibly take a buy if price action looks good. The good thing about this entry is the stop loss could be placed below the support (at around 1.3375) which would allow for a great risk reward.
Also note the DXY looks to be topping with resistance at 98.15 so we could see more consolidation before an eventual break of 1.35 on USDCAD.
The Trading Edge
Comment:
Target of 1.35 was hit yesterday.
It's always disapointing to have the overall analysis correct but still take a loss on a trade, but thats the nature of this industry. I know that as long as I keep to my plan then i'll remain profitable.
The Trading Edge
It's always disapointing to have the overall analysis correct but still take a loss on a trade, but thats the nature of this industry. I know that as long as I keep to my plan then i'll remain profitable.
The Trading Edge
My limit order was stopped out but i'm glad to see the overall analysis is correct as the market is just shy of resistance at 1.35.
The Trading Edge