USDCAD - Overview on Daily Timeframe - Waiting for the Drop
A long time favorite for all traders due to it's long cyclical movements, we have been following
USDCAD
for several months now, as the long term structure was in formation, and have also been able to take a couple of excellent trades on the way.
If you have not had the same opportunities, don't worry, as the main opportunity is yet to come.
On the daily timeframe, it is clear now that the pair has formed a classic "abc" correction, which for us traders is great news as it confirms without further due that there is a big downside movement coming.
In terms of potential targets of the coming downward movement, we will initially take the 1.186 and the 1.162 level, the latter being the 0.27 extension of the previous downward impulse. From a weekly timeframe perspective, however, the pair might go for an even bigger movement, making it a huge potential trade. However, we will have plenty of time to analyze potential extensions of the trade, once we are in it and in profit, and, already as it is, the coming short trade on the daily timeframe has a more than excellent R/R ratio, for traders who manage to get into it at the top.
In terms of potential entry points, reminding all traders that we are looking at a daily timeframe chart, if the "abc" were a perfect flat, "c" point would come around the 1.309 area, but flats are never perfect, as we learned, and in the reality of facts it is sufficient for the price level to break the top for the structure to be complete.
Updates on smaller timeframes will follow.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
USDCAD
for several months now, as the long term structure was in formation, and have also been able to take a couple of excellent trades on the way. If you have not had the same opportunities, don't worry, as the main opportunity is yet to come.
On the daily timeframe, it is clear now that the pair has formed a classic "abc" correction, which for us traders is great news as it confirms without further due that there is a big downside movement coming.
In terms of potential targets of the coming downward movement, we will initially take the 1.186 and the 1.162 level, the latter being the 0.27 extension of the previous downward impulse. From a weekly timeframe perspective, however, the pair might go for an even bigger movement, making it a huge potential trade. However, we will have plenty of time to analyze potential extensions of the trade, once we are in it and in profit, and, already as it is, the coming short trade on the daily timeframe has a more than excellent R/R ratio, for traders who manage to get into it at the top.
In terms of potential entry points, reminding all traders that we are looking at a daily timeframe chart, if the "abc" were a perfect flat, "c" point would come around the 1.309 area, but flats are never perfect, as we learned, and in the reality of facts it is sufficient for the price level to break the top for the structure to be complete.
Updates on smaller timeframes will follow.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.