Simple setup here where the daily price action is showing initial rejection of an established trend line. Volume isnt suggesting enough strength to push through this resistance in the approach to the trendline, inviting sellers to enter without too much opposition.
Stop Loss above both the trendline and recent high in order to place two solid barriers between the entry and a failed trade.
TP at the previous lows and next significant support.
In terms of supporting fundamentals and reasons to enter:
- Oil has been trending steadily higher over recent weeks and this supports CAD strength.
- There are still significant barriers to cross on US-China trade talks with further tariffs looming on the 15th December. Negative news from these talks or any imposed tariffs will have a negative effect on US economy and subsequently the strength of USD.
- The recent bullish price action has been very strong which could suggest overbought conditions and some correction due.
Stop Loss above both the trendline and recent high in order to place two solid barriers between the entry and a failed trade.
TP at the previous lows and next significant support.
In terms of supporting fundamentals and reasons to enter:
- Oil has been trending steadily higher over recent weeks and this supports CAD strength.
- There are still significant barriers to cross on US-China trade talks with further tariffs looming on the 15th December. Negative news from these talks or any imposed tariffs will have a negative effect on US economy and subsequently the strength of USD.
- The recent bullish price action has been very strong which could suggest overbought conditions and some correction due.