USDCAD - One alternative to trade USD correction
If you think the USD strength is stretched and that USD should pull back, you defenately have to pick single crosses to play, NOT the USD Index (DXY). With DXY there is a big problem, that is the EUR overweight within the index. As EUR will likely stay under pressure, you have to look unique USD crosses like USDCAD, or GBPUSD, if you decide to play a swing short trade on the dollar.
Daily (classic japanese candles):
The trend stays long term bullish, but yesterday candle looks like a hanging man. As many times before, this can signal some profit taking and a pull back is possible to around Kijun Sen at 1,1600. Watch Slow Stoch signal. In case Price breaks below Kijun Sen, a deeper correction tgt could be 1,1475-1,1500
4 Hrs (Heiken Ashi candles):
Bullish, but Heiken Ashi candles turned red, and Chikou Span is about to hit Price candles. First bullish support is 1,1700, real counter trend can take place really only below the Kumo and 100 WMA.
DMI lines started to converge, ADX turning down, the short term bullish trend may lose momentum.
I do not say go massive short, as that is against the major trend, but it is probably time to take profit on longs.
If someone decides to go short based on his/her own model, the trade size should not be more than 0,5 trade unit, based on your risk and money management principals.
p.s.: Gold keeps bullish bias. Is it a sign for a USD correction to come?
Daily (classic japanese candles):
The trend stays long term bullish, but yesterday candle looks like a hanging man. As many times before, this can signal some profit taking and a pull back is possible to around Kijun Sen at 1,1600. Watch Slow Stoch signal. In case Price breaks below Kijun Sen, a deeper correction tgt could be 1,1475-1,1500
4 Hrs (Heiken Ashi candles):
Bullish, but Heiken Ashi candles turned red, and Chikou Span is about to hit Price candles. First bullish support is 1,1700, real counter trend can take place really only below the Kumo and 100 WMA.
DMI lines started to converge, ADX turning down, the short term bullish trend may lose momentum.
I do not say go massive short, as that is against the major trend, but it is probably time to take profit on longs.
If someone decides to go short based on his/her own model, the trade size should not be more than 0,5 trade unit, based on your risk and money management principals.
p.s.: Gold keeps bullish bias. Is it a sign for a USD correction to come?
