USDCAD Potential Wedge breakout and Exhaustion On Monthly charts
Price is looking to breakout of the Daily wedge formation. Looking at the image below (weekly charts) the price is also confined in the wedge and is looking to test the lower trendline soon after rejecting the upper trendline.
On the Monthly timeframe a strong resistance of 1.2800 has been broken and now acting as potential support. There have been around 3 strong bullish candles indicating the bulishness of the USD, however an exhaustion is likely to take place and bring the price down temporarily
In short, The USDCAD is showing signs of exhaustion on monthly timeframe and is looking to test the lower part of trendline on the weekly time frame. On the daily chart there is enough evidence and probability to suggest that a breakout is likely. Please be aware this is a just analysis and potential break of the wedge will be intensified if it breaks and retest the EMA 50 as well. When all the criteria is met a trade can be placed
FUNDAMENTAL ANALYSIS
As we all know USDCAD is a commodity currency and currently the oil market is in correction and most likely headed up. Any news regarding the OIL affects this pair greatly so always read up. Personally i am neutral fundamentally
Commitment Of Traders
Large speculators have been dumping the USD and are in favour of the CAD inspite of the bullishness of the USD. This is probably because the recent uptrend in OIL. In short its a good stage to go SHORT when the wedge breakouts but i expect the USD to resume its uptrend after the exhaustion has been processed.
Overall its a good position to go short and take advantage of the Exhaustion move that USDCAD has to offer
If you like my analysis please give a like and follow me if you would like to read more and learn from these charts. Any trade entries if valid and meets my criteria will be updated in their respective charts
On the Monthly timeframe a strong resistance of 1.2800 has been broken and now acting as potential support. There have been around 3 strong bullish candles indicating the bulishness of the USD, however an exhaustion is likely to take place and bring the price down temporarily
In short, The USDCAD is showing signs of exhaustion on monthly timeframe and is looking to test the lower part of trendline on the weekly time frame. On the daily chart there is enough evidence and probability to suggest that a breakout is likely. Please be aware this is a just analysis and potential break of the wedge will be intensified if it breaks and retest the EMA 50 as well. When all the criteria is met a trade can be placed
FUNDAMENTAL ANALYSIS
As we all know USDCAD is a commodity currency and currently the oil market is in correction and most likely headed up. Any news regarding the OIL affects this pair greatly so always read up. Personally i am neutral fundamentally
Commitment Of Traders
Large speculators have been dumping the USD and are in favour of the CAD inspite of the bullishness of the USD. This is probably because the recent uptrend in OIL. In short its a good stage to go SHORT when the wedge breakouts but i expect the USD to resume its uptrend after the exhaustion has been processed.
Overall its a good position to go short and take advantage of the Exhaustion move that USDCAD has to offer
If you like my analysis please give a like and follow me if you would like to read more and learn from these charts. Any trade entries if valid and meets my criteria will be updated in their respective charts
Comment:
Anyone that wishes to enter this trade, they can when the prices retraces. THE SL & TP are visible on the chart. The risk reward ratio is is 1:21. Its good
PERSONALLY I WOULD NOT BE ENTERING THIS TRADE AS I AM ALREADY IN A SHORT POSITION FOR THE USDCHF TRADE THATS ACTIVE.
I AM NOT GOING TO UPDATE THIS THREAD ANYMORE. IF YOU WISH TO ENTER THEN YOU CAN. YOU CAN TRAIL YOUR SL ABOVE THE EMA50
THANK YOU
Anyone that wishes to enter this trade, they can when the prices retraces. THE SL & TP are visible on the chart. The risk reward ratio is is 1:21. Its good
PERSONALLY I WOULD NOT BE ENTERING THIS TRADE AS I AM ALREADY IN A SHORT POSITION FOR THE USDCHF TRADE THATS ACTIVE.
I AM NOT GOING TO UPDATE THIS THREAD ANYMORE. IF YOU WISH TO ENTER THEN YOU CAN. YOU CAN TRAIL YOUR SL ABOVE THE EMA50
THANK YOU
Trade active:
I will update any changes and adjustment here. Refer to the link above for entry criteria
I will update any changes and adjustment here. Refer to the link above for entry criteria
Comment:
Please update your stop loss to 1.32450 level
Risk reward on this one has changed from 1:2.2 to 1:1
Risk reward on this one has changed from 1:2.2 to 1:1
Comment:
ADJUST SL LEVEL TO 1.31900
Trade closed manually:
PLEASE CLOSE YOUR POSITION ONCE THE MARKET OPENS ON MONDAY. WE MANAGED TO GET AROUND 0.45% RETURN ON OUR 1% INVESTMENT ON THIS PAIR. CHEERS UNTIL NEXT TIME!
Trendline has been violated and price has closed below the 50 EMA on daily charts. A short opportunity will arise once the price retraces back to 50 EMA and shows a sign of reversal.
Personally its a good trade but i am already short on USDCHF and do not wish to risk by going short twice on the USD. for those of you who did not enter the USDCHF trade you can wait for this one