USD/CAD - Short at Resistance
USD/CAD hit a strong resistance level overnight (the level was formed a few years back and has provided S/R at multiple points since then - not every time, as nothing is perfect, but enough to show the market respects it.
Given that we've identified a resistance level that has been validated by the market, we then look for additional confirmation. In this case, we can see bearish momentum divergence approaching the resistance level. This is a classic sign of traders recognising the level, and slowly reducing their position size as price approaches.
Therefore, we have a favourable risk/reward scenario to short USD/CAD.
Target levels are:
Nothing is ever guaranteed, so be on the lookout for a news event, or a quick reversal back into resistance (potentially a false breakout). If price reverses and manages to close about the resistance zone, then look for a pullback into support for a move higher.
Remember, it doesn't matter where the market goes, as long as you go with it. Never be too fixated on a positional bias.
All the best.
DD
Given that we've identified a resistance level that has been validated by the market, we then look for additional confirmation. In this case, we can see bearish momentum divergence approaching the resistance level. This is a classic sign of traders recognising the level, and slowly reducing their position size as price approaches.
Therefore, we have a favourable risk/reward scenario to short USD/CAD.
Target levels are:
- T1: 1.3185 (60 pips)
- T2: 1.3122 (124 pips)
- T3: 1.3079 (167 pips)
Nothing is ever guaranteed, so be on the lookout for a news event, or a quick reversal back into resistance (potentially a false breakout). If price reverses and manages to close about the resistance zone, then look for a pullback into support for a move higher.
Remember, it doesn't matter where the market goes, as long as you go with it. Never be too fixated on a positional bias.
All the best.
DD
Note
So far so good. Will keep an eye on this one as it develops.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.