Traders,
USDCAD which I pointed out last week and which remained extremely indecisive is again being put on the spot for a trade opportunity. Trend Lines while magnificent tools are also dynamic - something many traders don't realize. You must adapt your trend lines as the market adapts to situations. I've illustrated in orange coloring 2 previous trend lines that have existed under this exact same scenario - the trade opportunity itself has barely changed but the points of entry have significantly. The Blue Dotted Line represents the current resistance or Bear Strength Trend Line. We seek a confirmed break of this before joining on any bullish trade related to the divergence up to the 1.27000 area.
Sometimes as a technical trader you have to realize that the market is as much alive as it is robotic. Don't get caught on old ideas/views if the market changes them, change with the market. The market is waiting, waiting for confirmation of some event, or confirmation of some reason to move higher or lower. At the current time the market does not have the information it needs to justify moving up or down. Due to how we got here from last week, it seems likely that it wants to move up, seeking that 1.27000 region. If you see it trading aggressively bearish however remember that outcome was just as likely. Let the market decide the direction - your job as a trader is just to follow it when it makes up it's mind.
This is a bit cluttered because there is actually quite a lot going on but here is the 4 hour chart of USDCAD:
If you have any questions or comments please feel free to drop them below
USDCAD which I pointed out last week and which remained extremely indecisive is again being put on the spot for a trade opportunity. Trend Lines while magnificent tools are also dynamic - something many traders don't realize. You must adapt your trend lines as the market adapts to situations. I've illustrated in orange coloring 2 previous trend lines that have existed under this exact same scenario - the trade opportunity itself has barely changed but the points of entry have significantly. The Blue Dotted Line represents the current resistance or Bear Strength Trend Line. We seek a confirmed break of this before joining on any bullish trade related to the divergence up to the 1.27000 area.
Sometimes as a technical trader you have to realize that the market is as much alive as it is robotic. Don't get caught on old ideas/views if the market changes them, change with the market. The market is waiting, waiting for confirmation of some event, or confirmation of some reason to move higher or lower. At the current time the market does not have the information it needs to justify moving up or down. Due to how we got here from last week, it seems likely that it wants to move up, seeking that 1.27000 region. If you see it trading aggressively bearish however remember that outcome was just as likely. Let the market decide the direction - your job as a trader is just to follow it when it makes up it's mind.
This is a bit cluttered because there is actually quite a lot going on but here is the 4 hour chart of USDCAD:
If you have any questions or comments please feel free to drop them below