USDCAD Another Potential Long Scalp
As
USDCAD
acted just how I wanted it to act last week, making a new structure high after retracing to the 50% fib retracement level of the previous new structure high, I will be expecting to see another move to the upside on this pair. Although the possibility of a new structure high is not confirmed yet, we can expect to see at the very least a retest of the previous structure high at around 1.31900 if some bullish momentum enters into the market. Please see the link below to my previous
USDCAD
post, a trade that took place last Friday that worked out just perfectly. We are expecting to see a similar move and to protect ourselves we will keep our stop loss below the trend line as it seems to be very strong with now 4 touches. At the moment price has retraced to the 38.2% fib level which is also a weekly resistance level that has now been turned into support and it could act as the reversal zone, however we are keeping in mind that price action could also do any of the following: retrace to the 50% fib level before reversing to the upside, retrace to the 61.8% fib level before reversing to the upside, or retrace to the trend line before reversing to the upside. By having our stop loss below the trend line, just below the monthly support, we will be protecting ourselves from all of those scenarios.
Please note the following rules below for entry to the upside:
Price action remaining above the trend line
Price action picking up some upside momentum, reversing to the upside after either the 31.8% fib level, 50% fib level, 61.8% fib level, or the trend line
Enter on bullish momentum above 1.31400
Profit whatever you can get, but keep in mind the possibility of a double top. If that previous structure high is broken 1.33000 is a weekly resistance level and therefore the final upside target
Stops at around 1.30600
This trade will lose its potential if the first rule becomes no longer applicable. For example if bearish momentum pushes price action substantially below trend line.
You will find that my style of trading often holds a greater risk than reward, however the potential of price action moving in the favor of my position where profit can be liquidated and banked before price action moves against me is very high when the rules are followed.
If you find yourself liking my style of trading please feel free to follow me as I will post potential trades like this rather frequently.
USDCAD
acted just how I wanted it to act last week, making a new structure high after retracing to the 50% fib retracement level of the previous new structure high, I will be expecting to see another move to the upside on this pair. Although the possibility of a new structure high is not confirmed yet, we can expect to see at the very least a retest of the previous structure high at around 1.31900 if some bullish momentum enters into the market. Please see the link below to my previous
USDCAD
post, a trade that took place last Friday that worked out just perfectly. We are expecting to see a similar move and to protect ourselves we will keep our stop loss below the trend line as it seems to be very strong with now 4 touches. At the moment price has retraced to the 38.2% fib level which is also a weekly resistance level that has now been turned into support and it could act as the reversal zone, however we are keeping in mind that price action could also do any of the following: retrace to the 50% fib level before reversing to the upside, retrace to the 61.8% fib level before reversing to the upside, or retrace to the trend line before reversing to the upside. By having our stop loss below the trend line, just below the monthly support, we will be protecting ourselves from all of those scenarios. Please note the following rules below for entry to the upside:
Price action remaining above the trend line
Price action picking up some upside momentum, reversing to the upside after either the 31.8% fib level, 50% fib level, 61.8% fib level, or the trend line
Enter on bullish momentum above 1.31400
Profit whatever you can get, but keep in mind the possibility of a double top. If that previous structure high is broken 1.33000 is a weekly resistance level and therefore the final upside target
Stops at around 1.30600
This trade will lose its potential if the first rule becomes no longer applicable. For example if bearish momentum pushes price action substantially below trend line.
You will find that my style of trading often holds a greater risk than reward, however the potential of price action moving in the favor of my position where profit can be liquidated and banked before price action moves against me is very high when the rules are followed.
If you find yourself liking my style of trading please feel free to follow me as I will post potential trades like this rather frequently.
Comment:
first target hit
