USDCAD: Break Hook and Go after NFP!
Couldn't resist not analyzing this setup!
Here it is for educational purposes. Never chase a breakout - Wait for pullbacks to get a more attractive reward-to-risk for your setup.
The trade went like this:
1. CAD labor market numbers strong vs USD labor market numbers weak (13:30 London time)
2. Breakdown on strong selling volume
3. Pullback to important 1.2850 level
4. Liquidity returns on high-volume weak bullish candle (chance for institutional traders to buy CAD at discount price, i.e. short USDCAD . They drain liquidity until the price reaches the 50%-61.8% zone. Yes, it's manipulation.)
5. Now we have a classic "break hook and go" setup with a profit target at the 1.272 Fib extension (reward-to-risk 9:1 if aggressive)
Great trade to close the week!
Here it is for educational purposes. Never chase a breakout - Wait for pullbacks to get a more attractive reward-to-risk for your setup.
The trade went like this:
1. CAD labor market numbers strong vs USD labor market numbers weak (13:30 London time)
2. Breakdown on strong selling volume
3. Pullback to important 1.2850 level
4. Liquidity returns on high-volume weak bullish candle (chance for institutional traders to buy CAD at discount price, i.e. short USDCAD . They drain liquidity until the price reaches the 50%-61.8% zone. Yes, it's manipulation.)
5. Now we have a classic "break hook and go" setup with a profit target at the 1.272 Fib extension (reward-to-risk 9:1 if aggressive)
Great trade to close the week!
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