Actually, I have open short position on USDCAD currently pending to close once upside reversal TAKES place IF it happens. And IF it happens, planning to reverse my short positions to longs.
This USDCAD long trade is ONLY a CONTINGENCY, a potential due to the fact that it MAY bounce from the long-term trendline. To be honest, fundamentally I'm bearish on CAD as I'm expecting oil to be bearish due to overflowing supply and weakness in the Canadian economy.
So to jump on the technicals, We will get LONG ONLY IF the following set-ups take place:
1. Price action around 1.3428 to 1.3545 HOLDS as it is fibo retracement zones confluent with uptrend channel and horizontal support areas.
2. IF it holds, the candle should CONFIRM. There must be a bullish candle (pinbar, harami, piercing line, etc.)
3. Once it closes with a bullish candle, we ENTER
IF any of the above will not take place...then THERE IS NO TRADE. I'll keep holding on my shorts and keep the profits fat.
Good luck.
This USDCAD long trade is ONLY a CONTINGENCY, a potential due to the fact that it MAY bounce from the long-term trendline. To be honest, fundamentally I'm bearish on CAD as I'm expecting oil to be bearish due to overflowing supply and weakness in the Canadian economy.
So to jump on the technicals, We will get LONG ONLY IF the following set-ups take place:
1. Price action around 1.3428 to 1.3545 HOLDS as it is fibo retracement zones confluent with uptrend channel and horizontal support areas.
2. IF it holds, the candle should CONFIRM. There must be a bullish candle (pinbar, harami, piercing line, etc.)
3. Once it closes with a bullish candle, we ENTER
IF any of the above will not take place...then THERE IS NO TRADE. I'll keep holding on my shorts and keep the profits fat.
Good luck.