The USD/CAD pairing looks like it is nearing it's second bullish
corrective move. Interestingly, the current bullish correction
is equal in length and angle to the first bullish correction
which commenced in May, 2016.
The 200 SMA (black line) is still in a very bullish angle,
however, price is also dangerously close to it thus a close
below it could happen sooner than later. A close below
the 200 SMA could complete the projected AB=CD
pattern, which reaches the 61.8% Fibo retracement drawn
from 0.9407 to 1.4690. Also note that it is the level where
the upper and lower trend lines intersect, thus, a crucial
level for future price direction.
Trade short (RvR ratio 5.04)
Entry: Close below 1.2460
S/L: 1.2672
T/P 1: 1.2048
T/P 2: 1.1392
As always, scale out your profits and adjust your stop/loss
to suit your personal risk management profile.
Happy trading
corrective move. Interestingly, the current bullish correction
is equal in length and angle to the first bullish correction
which commenced in May, 2016.
The 200 SMA (black line) is still in a very bullish angle,
however, price is also dangerously close to it thus a close
below it could happen sooner than later. A close below
the 200 SMA could complete the projected AB=CD
pattern, which reaches the 61.8% Fibo retracement drawn
from 0.9407 to 1.4690. Also note that it is the level where
the upper and lower trend lines intersect, thus, a crucial
level for future price direction.
Trade short (RvR ratio 5.04)
Entry: Close below 1.2460
S/L: 1.2672
T/P 1: 1.2048
T/P 2: 1.1392
As always, scale out your profits and adjust your stop/loss
to suit your personal risk management profile.
Happy trading