Piphunter1887

USDCAD Short opportunity could be in play by end of next week

Short
OANDA:USDCAD   U.S. Dollar / Canadian Dollar
Happy Weekend Traders,

Thank you for your likes and questions. If you have any queries feel free to message me.

I have had a few questions around how I build my analysis for the week. Here is one idea, I am looking at, I haven't placed a trade but is on my watchlist due to the below:

Bias: Short USDCAD
Type of idea: Swing

Please note: This chart is 4hr but the EMA is based off the Daily chart . I have used 4hr chart as a way to identify the price action so I can get into the trade early if it moves in my direction but not too early just in case it is noise.

Rationale:

1) Price has reacted between the Daily Chart 100EMA (Red line) & Daily Chart 50 EMA (Amber line) 2 times ( see pink circles)
2) Long term the pair is in a down trend
3) Near term the pair is in a down trend (Black line)

What am I waiting for:

1) USA news release next week (PMI, Non-Farm, Unemployment) I am not going to trade these releases but merely keep an eye on the release and see how positively or negatively it impacts the pair.
2) If news is negative for USD and price closes below Daily Chart 50EMA I will place a short
3) If news is positive for USD and price moves above Daily Chart 100EMA I will not place a trade

Point to note traders: Be careful of all USD pairs this coming week due to the news releases (that is only if your strategy doesn't include trading news releases).

If you like it give it a thumbs up and I will post a follow up should this pair move in favour of my bias.

Have a great weekend, Happy Hunting!






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