USDCAD - H4 Catch the Right Shoulder

Potential Head and Shoulders forming on the USDCAD 4 hour chart. One thought is to catch the right shoulder and ride it down as it descends to the ascending neckline. Take partial profit there and see if there is a break of the neckline OR play a bounce and grab a few more pips before the downtrend resumes. The upward momentum seems to be slowing here at the shoulder line and the MACD is starting to round off and get ready to fall as well. Price sometimes desires to start to pull back to the 50, 100 and 200 SMA's like a little bit of a magnet too.

ENTRY
The shoulder line @ 1.25380

STOP
1.2600

TARGETS
On Chart

Published 10/16/17

Comment:

1.24430 coming into to sight.

Right shoulder setting up nicely. We will take a partial profit at 1.24430 and move our stop to Breakeven above.

Then we will wait to see if there is a break of bounce.

Trade active:

Initiated trade at the shoulder line at 1.25370 a day ago.

Trade closed manually:

Closed 60% of our SHORT with what looks like a potential bounce in the USDCAD.

We will hold the other 40% of the position and move our SL to 1.25190 to preseve capital.

We are still looking for a break of the ascending neckline around 1.24430. We will keep our position open to see what move is next as we have taken some profit and protected ourselves to the upside.

Comment:

We have news coming later this morning from the BOC. Protect or take your partial profits and see what the news holds. We have protected our remaining open position.

Trade closed manually:

We have closed 50% of our remaining position and have left the last 20% of our initial LONG open to see what the market does in this coming session.

We have also moved our STOP LOSS to 1.25030 to protect more profits outstanding in case of a swing.