USDCAD reversed from Weekly ascending channel's resistance (yellow channel) around 1.3665 last days of 2018 and had 6 days of aggressive selling
It is consolidating for last 6 days
4 of last 6 candles were very weak bullish candles and couldn't go above on last bearish candle so the selling pressure is still high
there are 2 options to trade this setup :
1) breakout of bearish flag (little red channel) or breakout of 1.3180 support line
2) enter around 1.3325 and 20EMA (the red arrow down) if we had a nice bearish signal (pinbar or engulfing or ...) on 4H time frame
in both cases the stop will be above 1.3325 and targets will be channel's bottom or 1.2790 support shown with green flags
i like the second way because of higher reward to risk ratio
if price broke above 1.3325 this setup is not valid anymore
please like and follow if you like this!! :)
It is consolidating for last 6 days
4 of last 6 candles were very weak bullish candles and couldn't go above on last bearish candle so the selling pressure is still high
there are 2 options to trade this setup :
1) breakout of bearish flag (little red channel) or breakout of 1.3180 support line
2) enter around 1.3325 and 20EMA (the red arrow down) if we had a nice bearish signal (pinbar or engulfing or ...) on 4H time frame
in both cases the stop will be above 1.3325 and targets will be channel's bottom or 1.2790 support shown with green flags
i like the second way because of higher reward to risk ratio
if price broke above 1.3325 this setup is not valid anymore
please like and follow if you like this!! :)