fxstudent299

Short USDCAD – sell at role reversal line

FX:USDCAD   U.S. Dollar/Canadian Dollar
Trading idea on 1h chart:
Short USDCAD             – sell at role reversal line

After an impressive run USDCAD             seems to be exhausted and needs at least a larger consolidation.
-price broke under support line at 1.2670, which now is resistance (= role reversal) AND
-price on 4h chart is under 20EMA, so for me on that time frame it is not more in an uptrend

Often the price action is to run up towards the last support to test it as a new resistance.
Here that area also aligns with the Fib 50%-Retracement and there is where I would like to short.
_______________________________
Trading idea: limit sell order at 1.2670, Risk-Reward = 3.0
SL@ 1.2720 (-50), TP@ 1.2520 (+150)
_______________________________

Things to remember:
1. Important data for CAD on Wednesday and Thursday (higher volatility possible).
2. Friday is USD Non-Farm Employment Change and CAD Employment Change, so will not trade 1 hour before until 30 minutes after the data, as the volatility could be huge.
3. If price fall below 1.2510 the idea will be not valid anymore and I would not enter this trade

Disclaimer: There is a very high degree of risk involved in trading forex . I assume no responsibility or liability for any trading or investment results. My posted statements and charts may unintentionally include inaccuracies. All content posted is for educational purposes only and is not a financial advice. The presented set-ups are not solicitations of any order to buy or sell.
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out