USDCAD | Swing Trade 1.3

I think the banks are raising on a bluff. DXY is sitting at a 50% fib level from the most recent high to low swing, which is the only reason I could see the UCAD up another leg before turning, but do not be mistaken. That what looks too good to be true, probably is...

Monthly resistance at 1.3275 coupled with .786 retracement on the Daily. Last weeks test of the same level resulted in a weekly pin bar (remove Heiken candles and see for yourselves).

With so much momentum today, the fact that price stalled at a critical level and hesitated to break last weeks high with conviction, leads me to believe the baton will be passed in the other direction.

Always remember to use proper money management, take 1R losses and let your winners carry you to freedom.

Comment:

What did I tell you guys? The banks are running prices through the ceiling on purpose to take you out of the market. You’re telling me when the daily engulfing candle closed with such huge momentum that it wiped 10 days of trading couldn’t breach a critical level of resistance? Just because it looks good doesn’t mean it is. Watch for signs of exhaustion and always be wary of such moves. There is an end goal in sight which includes taking your hard earned cash.

Hasta a luego