Update Position 10th December:
We are updating our SELL Stop position to a better entry point. You can cancel the SELL STOP at 0.9160 but maintain the current open SELL trade.
Trade Setup: SELL STOP – entry price 0.9191, stop loss 0.9274 and take profit 0.8930.
Stop loss: 83 pips
Take profit: 261 pips
7th December Updated Position:
As mentioned earlier this morning, I was waiting for an opportunity to add an initial position at a higher level, this provides a greater risk v reward scenario. We will maintain our SELL STOP entry point but also add the first position now live in the market. The USDCAD is turning down and the DXY looks set for a breakout to the downside of the bear flag formation. – Please refer to the full analysis posted below for the full breakdown.
Using the FIB levels we will keep the SL above the 23% FIB retracement, if the market breaks that level it will most likely move into a new high.
Trade Setup 1: SELL market execution, current price 0.9250, stop loss 0.9335 and take profit target 0.8930.
Stop loss: 85 pips
Take profit: 320 pips
Good morning team,
Just our luck on the USDCAD, we were taken out pretty much on the pip before a large reversal overnight. Taking a look at a number of USD cross pairs there appears to be dollar weakness coming into the market. There are early signs of reversal setups, so I do feel there is another opportunity coming on the USDCAD over the next couple of days. Firstly, we are taking a look at the USDCHF due to its recent decline.
DXY – 1 Hour Chart
The DXY has set up a clear 5 wave decline on the 1-hour chart which is generally the start of a larger move to the downside. There is a head and shoulders formation and a bear flag structure. These all indicate a move lower for the USD.
USDCHF – 4 Hour Chart
The USDCHF has been trading inside a pennant formation throughout the whole of 2021, the initial breakout to the upside is classed as a fake-out.
USDCHF – 1 Hour Chart
The USDCHF has a similar structure to the DXY with an initial 5 wave decline, there is also a possible complete corrective a,b,c formation. We are positioning with a SELL stop at 0.9156, however, we may also add an earlier entry later today if the market turns sharply lower.
Trade Setup: SELL STOP – Entry price 0.9160, stop loss 0.9260 and take profit 0.8930.
Stop loss: 100 pips
Take profit: 230 pips
Just FYI, this is what we are tracking on the USDCAD, there is possibly a triangle formation in play. We will see how this unfolds over the next couple of days. The rising channel formation has now broken to the downside which indicates a change in trend.