USDCAD - SELL STOP - 24th June 2022




USDCAD - SELL STOP - 24th June 2022 (Closed)


Good evening team,

 

Despite the choppy action on the EURUSD, we are still trading in the direction of US dollar weakness. The DXY appears to be breaking down from a triangle structure which should also lead a breakdown from a bear flag formation on the USDCAD.

DXY Triangle Formation (B wave corrective triangle)

 

USDCAD 1 Hour Chart

The USDCAD has set up a bear flag formation, also known as a counter trend or corrective rally. Very text book trade setup here and we are looking to target the next support zone at 1.2856.

Trade Setup: SELL STOP, entry price 1.2959, stop loss 1.3025 and take profit target 1.2856.

Stop loss: 66 pips

Take profit: 103 pips

Trade Setup
SELL STOP

Entry
1.2959

Take Profit
1.2856

Stop Loss
1.3029