Long and Short setups of USDCAD On Weekly & Daily Chart
On the weekly chart, pair has come close to a key zone where rebound might happen! Whilst on the daily chart, price is pending forming the lower low. So I got my trading plan as below:
1. if the pair tumbled and created a lower low, I would seek long opportunity in the area marked DZ1 on weekly chart. I will look for long setups on 4H chart.
2. If the pair rebound to the short zone I marked on daily chart(1.3134-1.3170), I would place short order. I only risk 36 pips. The target could be at least 100 pips.
As we know, CAD is highly correlated with crude oil. So, we short the pair with the expectation of weak crude oil. Look at the crude oil price, it's been risen for a few days. Why?
One of the possible reason is the news of vaccine. With the vaccine coming soon, the world will be back to normal. Borders will be opened and economy will be back again. Normally, strong economy means high consumption of crude oil. The supply and demand will push the price higher.
I posted my view of DXY which is still in the bottom range. A possible rebound? Let's see!
1. if the pair tumbled and created a lower low, I would seek long opportunity in the area marked DZ1 on weekly chart. I will look for long setups on 4H chart.
2. If the pair rebound to the short zone I marked on daily chart(1.3134-1.3170), I would place short order. I only risk 36 pips. The target could be at least 100 pips.
As we know, CAD is highly correlated with crude oil. So, we short the pair with the expectation of weak crude oil. Look at the crude oil price, it's been risen for a few days. Why?
One of the possible reason is the news of vaccine. With the vaccine coming soon, the world will be back to normal. Borders will be opened and economy will be back again. Normally, strong economy means high consumption of crude oil. The supply and demand will push the price higher.
I posted my view of DXY which is still in the bottom range. A possible rebound? Let's see!
Comentarios:
I don't find entry zone on 4H chart.
plan your trade and trade your plan
