Long or Short: Short
Entry Point:: At the break of .9915 (last week’s low and former support)
Stop Loss: .9950 (above triangle high)
Profit Target/s: long-term target at .9750 (previous lows)
Reward-to-risk Ratio: 2.5:1
Risk percentage: 1%
Indicators used:s Stochastics (14,3,3)
Trade Rationale:
Despite the release of bearish news it seems that traders are on a buying mood. I’ll ride the trend and buy the Loonie until there are significant reports that point to a reversal in the current trend.
On a technical level, there is a descending triangle on the 4-hour chart, which suggests a continuation of the current trend.
Trade Adjustments:
I’ll move my stop loss to break even as soon as the pair hits .9850 as it has also been a solid support and resistance level for the pair. I’ll cancel my trade idea if USD/CAD doesn’t break below .9900.