While I’m waiting for these trades to get moving, I thought I would post some charts illustrating what I am thinking regarding their next move…
In this USDCAD WEEKLY chart above, we have what might be a sort of head-and-shoulders pattern. I was unsure initially where to put my stoploss since there seem to be two primary areas of resistance. I placed it at the higher level for now to play it safe. I am hoping to ride this trend down and start pyramid trades at points of retracement. So, I will also follow my stop down when it seems appropriate to do so.
In the USDCAD DAILY chart above, we have an inside-day candle set up which did break to the downside. So, currently looking bearish. We also see swing trading conditions with Lower Highs and Lower Lows being established, and a rejection candle at the current price level. Hopefully we will build some bearish momentum over the coming days.
In the 4 Hr UDSCAD chart above, we have a couple smallish rejection candles and a possible trendline break. I say possible because I’m never sure if I am drawing them correctly. But overall this looks like the retracement is coming to an end.