I show on the chart the key support level: 1.056
This is an important level which if price breaks this level; U/C cannot its uptrend anymore. I show three times U/C test this level and bound back. This is very rigid benchmark and U/C cannot pierce this level unless market provides enough force. However, fundamental elements now support uptrend, don’t favour downtrend.
This key support also coincides 38.2% Fib retracement. This consolidates for the strength of 1.056 level.
Thus, we can place stop loss here : 1.056. For sure traders can move stop loss a little bit to avoid scam from broker. 1.046 for example.
Today price stops at 1.0628. this is also 23.6% Fib retracement I show on the chart. This level also coincide 10 and SMA20. Thus, this also a strong level but not too strong likes 1.056 level.
we can see that U/C constant test 1.07 level and then bound back, but we must acknowledge that this level was pierced many times, and with lifting power from fundamental factors, I think U/C cannot hold below this level longer. I think U/C will be trade higher this level. Once this level was broken, there is no reason it is broken again.
The next target is 1.0740 high. This is the level which U/C was hit last Friday and bound back.
Next target is 1.08 level: This is a psychological level.
Next target is 1.0827. 38.2% Fib Retracement from 2009-02-28 to 2011-04-30
Price moved from 23.6% Fib retracement to get close to 38.2% Fib retracement. I believe U/C will touch this level next year. The problem is time.
So I have enough target and stop loss.
Now this is the strategy to trade USDCAD .
Next week the price don’t have too much change, the market will be busy after New Year.
IF PRICE BREAKS 23.6% Fib RETRACEMENT: 1.0628, IT WILL GO DOWN TO 1.056 LEVEL. WE CAN BUY AT 1.056/1.0550 AND PLACE STOP LOSS AT 1.05 LEVEL : 50% FIB RETRACEMENT.
IF PRICE BREAKS 1.067 LEVEL. WE ENTER BUY POSITION. STOP LOSS AT 1.056 AND TARGET AT 1.0740 HIGH. TARGET SHOULD MOVE BACK 10 PIPS FOR SURE: 1.0730
AND IF PRICE BREAK 1.0740 LEVEL AND TRADE HIGHER THIS KEY LEVEL , WE OPEN A POSITION AIM THE 1.08 LEVEL AND STOP LOSS AT 1.063
WE WILL NOT TRADE IF PRICE FLUCTUATE IN THE RANGE BETWEEN 1.067 AND 1.056. I JUST OPEN THE TRADE WHEN PRICE :
- 1 : MOVE TO 1.056 LEVEL
- 2 : BREAK 1.067
PRICE MUST CHOOSE A TREND, AND THAT IS UPTREND. IF USDCAD TRADES BELOW 50% Fib RETRACEMENT LEVEL , THIS IS THE MOST DIFFICULT MATTER WHICH I MET.
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