Some of you might be following my analysis on the USDCAD pair and just got stopped out from the last H4 Bearish Bat. However I am still very bearish for this pair on the long term.
In a few hours time we have some major news release on the CAD - Trade Balance, Interest Rate and Oil Inventories, which has major impact on this pair.
Two outcome I am expecting: 1. USDCAD broke all my Supply and Resistance levels and hit my Stop loss for my 2 months' long position trade and I exit with a small profit. 2. Price tumbles down further and challenge the 1.31-1.32 region again.
I am in favor of the 2nd outcome due to the fact that USDCAD appreciated close to 250pips over 2days and it is unlikely to continue moving up, at the very least a pullback before going higher. Let's say I am right on this, I will be looking to add on my short positions and take partial profits and let the rest aim for longer targets.
Price is now resisted at my Supply Level, Resistance Level and early Butterfly Pattern short level, at the same time it formed a Wedge on the way up. To wait for the break downwards and enter sell order on the 0.618 pullback. The empty space in the red circle shows where price is likely to go after a rapid upward move.
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Order cancelled
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Price went up sharply and broke my levels.. Exited all my short positions on this pair and looking for next setup :)