Good evening team,
In todays set up we are looking at trading a possible correction on the USDCAD. Technically speaking this ticks a number of boxes.
The USD has been under pressure since the US election results and we may see some profit taking during the US session tonight. Please take a few minutes to watch todays members video in the trading floor. There are a number of technical patterns we are looking to position on this week.
USDCAD – 1 Hour Charts
The RSI is signalling a bullish divergence on the 1 hour charts. There is currently a falling wedge formation suggesting a possible pull back into the new resistance zone. We can also see a key trend line tag which is providing support. Lastly, there is a double bottom in play which can result in buying interest.
We are waiting for a breakout play on this set up. The plan is to enter a long position at 1.3035.
Trade setup: BUY STOP – Entry price 1.3035, stop loss 1.2980 and take profit 1.3095 – 1.3175
Stop loss 55 pips
Take profit: 60-140 pips