USDCAD Long Opportunity Developing on the 4hr Chart
Bat continuation pattern inside a symmetrical triangle.
See chart for details.
Ideal Bat Criteria:
XA is pattern's longest leg.
AB retraces to 0.383 - 0.5 of the XA leg.
BC retraces between 0.382 and 0.886 of the AB leg.
CD is ideally equal to AB in price and time, but typically extends to the 0.886 retracement of the BC leg. D often occurs between the 1.618 and 2.618 extension of BC.
See chart for details.
Ideal Bat Criteria:
XA is pattern's longest leg.
AB retraces to 0.383 - 0.5 of the XA leg.
BC retraces between 0.382 and 0.886 of the AB leg.
CD is ideally equal to AB in price and time, but typically extends to the 0.886 retracement of the BC leg. D often occurs between the 1.618 and 2.618 extension of BC.
Comment:
Price action is entering the green box zone. Watch for a reversal signal. Lots of data being released today and tomorrow from the US, and Canada BoC rate decision tomorrow. Could be volatile, so be cautious of entry and stop loss levels.
Comment:
Canada rate decision and US oil inventory data has pushed the price back down into the green box area (below 1.34500). US FOMC out in 2.5 hours will likely drive this price back up. Watching for a buy signal on lower time frames now.
Comment:
While I was able to get in for a small profit a few times, this trade idea does not seem to be moving as forcefully in the upward direction as I had hoped. Time to abandon and reassess.