After a sharp down move USDCAD price is testing the 0.618 fib level of the impulsive move at the same level where it meets the upper parallel of a confirmed fork. The safest way to trade this market is to wait for price to break below the corrective upmove and watch for sell setup to complete.
P.S: Take a minute and read my post of "1001 pips project". You may find the link below..
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Althought it's a little early, it looks like we may have the breakout below the corrective structure.
Hi Fxpro, I think we now have the sell active, right? Where would you put SL, above 200 SMA or above the last peak?
Fxprotrader
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No aziz.. I have not active sell yet. Breaking out below the correction is the first part.. For a safe setup wait for a sell setup to complete.. But if you want to trade it only because we have a breakout, place your stoploss above 1.31925 and aim for 1.28410. But this is my recommendation..! Good luck..!
aziz.au
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Thanks Fxpro. What is the criteria for a sell set up completion after such breakout?
Fxprotrader
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There are many startegies that you could use.. Price action, fibonacci retracements, smaller patterns etc.. You have to test on your own what's works best for you..