USDCAD 4 HR | Bearish Trend Continuation
USDCAD could fall 138 pips if it can stay below 1.35342
Why 1.35342?
Let's just round it and say $1.353 Canadian dollar. The exchange price for the United States Dollar is decreasing which means Canadians are able to buy the Dollar at a cheaper price.
Evidence
High(H) & Low(L)
Per the 4 our timeframe, price is declining. The current falling price of the Dollar price per the Canadian Dollar has been 1.34152(L), 1.35342(H), and 1.34136(L).
We can see the high and low prices are decreasing hence what is called LOWER LOWs and LOWER HIGHs.
Actions
The best action to take is to sell since currently the trend is down. That is what the chart per this timeframe is showing.
The best price to sell below as stated above is 1.35342. The entry price is between 1.35207 and 1.35342. This range equates to 13 pips.
This means if you enter at market order, you can wait for price to enter the range and provide evidence price can decrease.
Or, if you set a pending order , you can set a pending order at 1.35207 with a TP down to the low or further.
Why do I believe price can fall 138 pips? This is a Reward to risk drop from the pending order price of 1.35207 based on my stop loss placement.
Sidenote:
Your Reward to Risk will vary from mine analyzing this trade using your own risk management strategy and trading plan.
What can invalidate this trade?
If price pushes higher than 1.35342, showing evidence buyers have taken control, the trade in invalidated. Or, price could continue to drop from here which means we'd have to update the sell idea.
What would this mean?
If you entered the trade and price went higher than 1.35342 you'd be stopped out. However, if price were to continue lower without pushing past the highs, you'd be in profit.
Should you trade this?
If this fits how you trade, yes.
If not no.
Let's keep it that simple.
I hope you enjoyed this analysis.
Like this post and share it if you did.😁
Many blessings,
Shaquan
Why 1.35342?
Let's just round it and say $1.353 Canadian dollar. The exchange price for the United States Dollar is decreasing which means Canadians are able to buy the Dollar at a cheaper price.
Evidence
High(H) & Low(L)
Per the 4 our timeframe, price is declining. The current falling price of the Dollar price per the Canadian Dollar has been 1.34152(L), 1.35342(H), and 1.34136(L).
We can see the high and low prices are decreasing hence what is called LOWER LOWs and LOWER HIGHs.
Actions
The best action to take is to sell since currently the trend is down. That is what the chart per this timeframe is showing.
The best price to sell below as stated above is 1.35342. The entry price is between 1.35207 and 1.35342. This range equates to 13 pips.
This means if you enter at market order, you can wait for price to enter the range and provide evidence price can decrease.
Or, if you set a pending order , you can set a pending order at 1.35207 with a TP down to the low or further.
Why do I believe price can fall 138 pips? This is a Reward to risk drop from the pending order price of 1.35207 based on my stop loss placement.
Sidenote:
Your Reward to Risk will vary from mine analyzing this trade using your own risk management strategy and trading plan.
What can invalidate this trade?
If price pushes higher than 1.35342, showing evidence buyers have taken control, the trade in invalidated. Or, price could continue to drop from here which means we'd have to update the sell idea.
What would this mean?
If you entered the trade and price went higher than 1.35342 you'd be stopped out. However, if price were to continue lower without pushing past the highs, you'd be in profit.
Should you trade this?
If this fits how you trade, yes.
If not no.
Let's keep it that simple.
I hope you enjoyed this analysis.
Like this post and share it if you did.😁
Many blessings,
Shaquan