USDCAD – SELL – 23rd June 2020

USDCAD – SELL – 23rd June 2020 (Closed)

Good afternoon team,

You may have all seen the huge whipsaw earlier today as Trumps trade advisers comments shocked the market. Trump tweeted immediately afterwards suggesting the trade war deal is still well on track. It has been reported that China has only purchased roughly 13% of the agreed amount of soy beans, very interesting.

What we are seeing is Trump and the powers above constantly moving to keep the financial markets high leading into his Presidential election. This suggests the risk on mode may continue, no matter how bad the economy gets. Something to keep in mind, the worse the economy gets, the more money central banks may print to support the financial markets.

We are now looking to short the USD based on the risk on theme of the market.

DXY – 1 Hour Charts

Please check the chart I posted in telegram last night on the USD index with the Elliott wave theory. We could be looking at another leg lower to complete wave 3. We are potentially looking at a head and shoulders formation on the 1 hour time frame suggesting further downside.

USDCAD – Daily Charts

As you can see the market has been rejected from a major resistance level seen back in April 2019.

USDCAD – 4 Hour Charts

There has been a series of lower highs suggesting a bearish trend. We have also seen a bear flag breakout followed by a retest.

We are now looking to enter a sell on the pair.

Trade Setup: SELL, market execution (current price 1.3530), stop loss 1.3630 and take profit 1.3360 – 1.3318

Stop los: 100 pips

Take profit: 170 pips

Trade Setup
SELL - Market Execution

Entry
1.3530

Take Profit
1.3360

Stop Loss
1.3630