USDCAD - Set and Forget

1. Objective:
The objective is to enter a sell trade and ride the expected downward trend to the Wave 5 completion.

2. Key Levels:
Resistance Levels:

1.35880: Major resistance level (D1 R) above Wave 4.

Support Levels:

1.32672: Key support level (D1 S) and the expected completion of Wave 5.

Invalidation Level (Stop Loss):

1.35880, the resistance level, as a break above this would invalidate the expected downward move and signal that the Wave 4 correction is still in play.

3. Entry Strategy:
Entry Point (Sell Stop): 1.34990

This level is slightly below the current price and the confirmation sell stop level indicated on the chart, signaling the start of the bearish breakout.

4. Profit Targets:
First Target (Conservative): 1.34000

This is a minor level, providing a conservative target in case the move takes time to develop fully.

Second Target (Aggressive): 1.32672

This is the key support level (D1 S) and the expected completion of Wave 5, making it the aggressive target for the full downward move.

5. Stop Loss:
Stop-Loss Level: 1.35880

Set above the resistance level of 1.35880 to protect against further upward movement in case the analysis is invalidated.

6. Risk-Reward Ratio:
Risk: 89 pips (from 1.34990 entry to 1.35880 stop-loss).

Reward for Target 1: 99 pips (from 1.34990 entry to 1.34000).

Reward for Target 2: 232 pips (from 1.34990 entry to 1.32672).

Risk-Reward Ratio:

Target 1: 1:1.11 (for a conservative target, acceptable).

Target 2: 1:2.6 (for an aggressive target, highly favorable).

Conclusion:
Strategy: Enter a Sell Stop at 1.34990, with a stop-loss at 1.35880.

Profit Targets: First target at 1.34000 and second target at 1.32672.

This plan offers a strong risk-reward ratio, particularly when targeting the extended move to 1.32672, which aligns with the completion of Wave 5.

This trading plan provides a clear structure, strong risk management, and high probability of success based on the current wave structure analysis.

Trading Suggestion

Sell Stop

Entry Level: 1.34900

Stop Level: 1.35700

Profit Level: 1.32700