USDCAD Long on Divergence, TCT, STRONG Support
Hello Traders,
In my opinion, we have an excellent potential opportunity to get long and continue the general consolidation pattern we've been in since the beginning of 2016. The bottom trend line is a very strong support, going back more than 2.5 years. You must look at the daily or weekly chart to fully appreciate this support line. If this line is broken to the downside, that would be a STRONG sell.
There is no real major economic data coming out for either currency this week. Trump will be sworn in next Friday and I suspect there might be another bullish dollar rally leading up to the inauguration.
Momentum and strength are increasing while price has formed a bottom at the 1.319 area. I will be looking to enter @ 1.32 or on the bullish breakout of the minor trend line drawn on the chart. Two potential targets are shown. S/L about 1.316. I will update with specifics if/when a position has been taken.
Thanks!
-Brandon
In my opinion, we have an excellent potential opportunity to get long and continue the general consolidation pattern we've been in since the beginning of 2016. The bottom trend line is a very strong support, going back more than 2.5 years. You must look at the daily or weekly chart to fully appreciate this support line. If this line is broken to the downside, that would be a STRONG sell.
There is no real major economic data coming out for either currency this week. Trump will be sworn in next Friday and I suspect there might be another bullish dollar rally leading up to the inauguration.
Momentum and strength are increasing while price has formed a bottom at the 1.319 area. I will be looking to enter @ 1.32 or on the bullish breakout of the minor trend line drawn on the chart. Two potential targets are shown. S/L about 1.316. I will update with specifics if/when a position has been taken.
Thanks!
-Brandon
Comment:
Entry was made @ 1.32 and was stopped out pretty quick at 1.316. As per the above analysis, I will now look to make a short entry. The plan is below:
