The USDCAD has been trending down from the beginning of 2016. The long term weekly GMMA (orange) has begin to compress since then and starting to roll-over. On the other hand price has retraced from the lows of the month and it seems that has found resistance on the weekly long term GMMA. Stochastics is on the overbought area and starting to cross down. Therefore, there is a chance that price can move south from now on.
Trading Scenario :
Order 1
Entry Short @ 1.2909
SL @ 1.3225
TG @ 1.2275 for 1:2 risk-to-reward ratio
Trade management: boxes in units of risk-to-reward ratio
Order 2
Entry Short @ 1.2909
SL @ 1.3225
TG - open downside target
Trade management: boxes in units of risk-to-reward ratio. Move stoploss to break even as soon as order 1 hits target
Trading Scenario :
Order 1
Entry Short @ 1.2909
SL @ 1.3225
TG @ 1.2275 for 1:2 risk-to-reward ratio
Trade management: boxes in units of risk-to-reward ratio
Order 2
Entry Short @ 1.2909
SL @ 1.3225
TG - open downside target
Trade management: boxes in units of risk-to-reward ratio. Move stoploss to break even as soon as order 1 hits target