Using bearish divergence to build a case for reversal trading on USD/CAD with the following favouring a potential short scenario:
- resistance (3rd touch) at ~1.2800
- bearish high test close below resistance
- price reaches and closes below 1.272 Fibonacci extension
level
- Stochastic and RSI bearish divergence
entry - below low of high test
stop loss - above high of high test (placement is discretionary)
target - 20 or 50 ema, or previous horizontal level
Caution for conservative traders: Fed Chair Janet Yellen testifies at 10:00 EST
- resistance (3rd touch) at ~1.2800
- bearish high test close below resistance
- price reaches and closes below 1.272 Fibonacci extension
level
- Stochastic and RSI bearish divergence
entry - below low of high test
stop loss - above high of high test (placement is discretionary)
target - 20 or 50 ema, or previous horizontal level
Caution for conservative traders: Fed Chair Janet Yellen testifies at 10:00 EST