USDCAD - Down We Go!
Looking at the higher time frames, price has failed to break resistance at 1.3340 and the 78.6% Fibonacci level and we can see price was becoming increasingly squeezed waiting for the breakout. We saw price had in fact closed below the 4 Hour 50ema on several occasions before driving back into the resistance zone (creating a quadruple top!) so patience’s has been key with this pair.....
The safest way to approach this trade was always waiting for that solid close below the CTL with entry's taken upon some form of a retest.
We now have the confirmation we have been waiting for and now we look for an area of execution. We can see price has been stopped by the Daily 50ema and seems to have stalled. I will be looking for price to retest previous market structure and tap the 38.2 (reliable after a high momentum move) which would also align with the 4 hour 50ema, so more than enough confluences. Keep an eye on price action around this level - if we see multiple wick rejections (to the upside) or any bearish signals, in particular on the 15 min and 1 hour time frame this is our confirmation that the bears are waiting.
Stops can be protected above this area of multiple confluences with downside targets of 1.3100 & 1.3000 presenting us with a decent Risk/Reward short trade.
Instagram: thetraveltrader (instagram.com/thetraveltrade...)
Twitter: Fx_ollie (twitter.com/fx_ollie)
The safest way to approach this trade was always waiting for that solid close below the CTL with entry's taken upon some form of a retest.
We now have the confirmation we have been waiting for and now we look for an area of execution. We can see price has been stopped by the Daily 50ema and seems to have stalled. I will be looking for price to retest previous market structure and tap the 38.2 (reliable after a high momentum move) which would also align with the 4 hour 50ema, so more than enough confluences. Keep an eye on price action around this level - if we see multiple wick rejections (to the upside) or any bearish signals, in particular on the 15 min and 1 hour time frame this is our confirmation that the bears are waiting.
Stops can be protected above this area of multiple confluences with downside targets of 1.3100 & 1.3000 presenting us with a decent Risk/Reward short trade.
Instagram: thetraveltrader (instagram.com/thetraveltrade...)
Twitter: Fx_ollie (twitter.com/fx_ollie)
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