We just took a look at this pair in the Syndicate and I wanted to share it with you guys as well. I'm looking for buying opportunities here on the USDCAD and this particular trade fits right into today's theme of being "Predictive with your analysis & reactive in your execution."
With the change in Canadian sentiment, we've seen a massive amount of buying for the CAD, nothing last forever and this looks to be a good place for buyers to retest the market (buy orders) and for sellers to remove some profits (buy orders)...See what I did there.
Anyway, I just missed confirmation on the recent for hour close, so I'll need to wait until 9pm NY time for my next opportunity to get involved.
Whenever you see this type of move you hear the cliche, "don't catch a falling knife" reference. To be that's a bunch of bull and as counter trend traders it's our job to catch those knives as long as their at smart areas in the market.
Hey Akil, those drops are always crazy tempting. Everything says buy buy buy, but seems more often than not the drop can always go down and stall a bit more =/ I would look for a 1:1 RR trade to take profit at previous resistance only if the price broke out and closed over current downtrend. I would look to buy somewhere in this area of a retest. Otherwise, a double bottom if it can't break the downtrend now. Warning: Swimming upstream without some goodie candles can be dangerous to your health!!
Akil_Stokes
⋅
@mooselaz, I agree, i certainly think that it can fall a bit further down to the $1.30 level if support does not hold. Tomorrow's FOMC will have a lot to say about that as well
glitchTA
⋅
@Akil_Stokes, Scenario 1 of breaking downward trend didn't happen, but it appears as though scenario 2 double bottom has occurred, with a bullish engulfing on 1-hour chart. Taking the trade, aiming for resistance level 2 for profits, but rolling stop to break even if we hit resistance 1. almost a 2:1 RR. If we stagnate, I will roll my stop loss to a few pips below in case news drops the price bigly!
thegrowmoneymovement
⋅
I found a cypher in it that is just about ready...about 40 pips away..
When trying to catch the falling knife sometimes we have to take more than 1 shot. (As long as the structure level is still valid) Took my 1st shot this morning and I'm looking to get long again.
Akil_Stokes
⋅
@rozela99, I just checked the 4 hour candle and I'm not able to get involved. We'll see what London has to say about this pair in the morning