USDCAD Short off Technical Top prior to expected rebound.

FX:USDCAD   U.S. Dollar / Canadian Dollar
On a larger time frame the USDCAD             is a Long Trade. This is because of divergent monetary expectations with regard to the BoC             and the Fed with the latter having recently cut rates for the CAD and a rate hike being priced in for the USD.

This is a technical short off the 1.300 Handle that confluences with the 261.8 Fib extension of the Bearish corrective wave from 1.25160 to 1.22180, visible on the Daily Chart to the right. On the same D1 TF, Stochastic Oscillator (12,3,3) is indicative of overbought conditions as candlesticks are getting smaller by the day, a sign of slowed momentum.

A rebound off the 38.2 Fib Retracement is expected as a minor corrective wave attempts to find support. A correction of more than 50% of the current Bull Wave is unlikely. Long positions will later be taken as soon as PA is favorable. Patience pays.

Other important technical levels have been demarcated on the charts.

  • No correction takes place, technical breakout occurs past 1.300. Influx of Buy Stops hit at that region will cause more Bulls to check in.
  • Calling tops, especially against established momentum is a dangerous thing to do. You can never be really sure.
Trade closed at BE.
Update 1:
This moved much faster than expected. Very nice. All Stop Losses moved to BE.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out