USDCAD Chart Analysis. 1 - 2 weeks outlook.
Hello traders!
For a quick summary of Canada's international transactions in Securities as of April 2018, see the article:
www150.statcan.gc.ca...15/dq180615a-eng.htm
It is important to also note the upcoming risk events of high importance to this pair, as these can cause a short-term increase in volatility, which could potentially help or hurt your portfolio.
Chart Analysis
The pair is appreciating (and has been for a while) since it is trading above its 50-day moving average, at least. As such, I will be looking to enter into ONLY long positions. The majority of market participants are bullish on the pair, which means there is more momentum to the upside. However, because the pair is at a resistance level, that is, the current daily close is near the upper bound of the ascending channel and near the 1.3200 level, it is unwise to enter into a long position now. Instead, I will wait to see how the market reacts to this level. I will then look to enter into a long position IF AND ONLY IF the pair pulls back down to the 1.3000 level. This provides a potential trade with an R-multiple of 4. Also, I can expect this potential scenario to materialize within the next 2 weeks.
Remember to trade with care!
If you like my content, and you feel like it has helped or improved your trading, please show some support by liking this post and following me. This way, you'll be the first to know when I post new trade ideas.
Disclaimer: Holding positions in the financial markets is very risky. The information provided above is not a recommendation or advise on how to invest your money. It is provided for public consumption only. I am not liable for whatever losses you might incur were you to follow the above strategy. You are solely responsible for the risks inherent to holding positions in the financial markets.
For a quick summary of Canada's international transactions in Securities as of April 2018, see the article:
www150.statcan.gc.ca...15/dq180615a-eng.htm
It is important to also note the upcoming risk events of high importance to this pair, as these can cause a short-term increase in volatility, which could potentially help or hurt your portfolio.
Chart Analysis
The pair is appreciating (and has been for a while) since it is trading above its 50-day moving average, at least. As such, I will be looking to enter into ONLY long positions. The majority of market participants are bullish on the pair, which means there is more momentum to the upside. However, because the pair is at a resistance level, that is, the current daily close is near the upper bound of the ascending channel and near the 1.3200 level, it is unwise to enter into a long position now. Instead, I will wait to see how the market reacts to this level. I will then look to enter into a long position IF AND ONLY IF the pair pulls back down to the 1.3000 level. This provides a potential trade with an R-multiple of 4. Also, I can expect this potential scenario to materialize within the next 2 weeks.
Remember to trade with care!
If you like my content, and you feel like it has helped or improved your trading, please show some support by liking this post and following me. This way, you'll be the first to know when I post new trade ideas.
Disclaimer: Holding positions in the financial markets is very risky. The information provided above is not a recommendation or advise on how to invest your money. It is provided for public consumption only. I am not liable for whatever losses you might incur were you to follow the above strategy. You are solely responsible for the risks inherent to holding positions in the financial markets.