USDCAD 1.24 Support Held, Targeting 1.28
Trend Analysis
The main view of this trade idea is on the 4-Hour. The fx cross USDCAD held support around the 1.245 price level after hitting resistance from 1.28. This is a counter-trend move from the rally in USDCAD which appears to be exhausted. Expectations are for a rally towards the 1.28 price level, 2.4% away from the time of publishing.
Technical Indicators
The hypothesis in the price movements is supported by the RSI and KST technical indicators. The RSI was oversold for a brief moment as USDCAD attempted to break below 1.24. However, the oscillator quickly rebounded and is back above 50 at the time of publishing. Also, the KST just created a positive crossover, another bullish signal for USDCAD. Currently USDCAD is trading above its fractal moving average and is currently testing is short term (25-SMA) moving average. Expectations are that the fx cross consolidate around its medium term (75-SMA) before returning to 1.28.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 1.24 price level and a target of 1.28. This produces a risk-reward ratio of 3.03.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in USDCAD .
The main view of this trade idea is on the 4-Hour. The fx cross USDCAD held support around the 1.245 price level after hitting resistance from 1.28. This is a counter-trend move from the rally in USDCAD which appears to be exhausted. Expectations are for a rally towards the 1.28 price level, 2.4% away from the time of publishing.
Technical Indicators
The hypothesis in the price movements is supported by the RSI and KST technical indicators. The RSI was oversold for a brief moment as USDCAD attempted to break below 1.24. However, the oscillator quickly rebounded and is back above 50 at the time of publishing. Also, the KST just created a positive crossover, another bullish signal for USDCAD. Currently USDCAD is trading above its fractal moving average and is currently testing is short term (25-SMA) moving average. Expectations are that the fx cross consolidate around its medium term (75-SMA) before returning to 1.28.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 1.24 price level and a target of 1.28. This produces a risk-reward ratio of 3.03.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in USDCAD .
Trade closed: target reached:
Target Reached. Move Stop loss to break even and monitor for change in trend.
