USD/CAD Bearish Butterfly Pattern
USD/CAD is starting to show some weakness, finally, thus
offering a chance to short this market as it starts a
corrective move towards the end of this month.
With the current DXY strength and potential for oil prices to
drop, USD/CAD should remain bullish in the longer term but
only after a much needed correction. By looking at the
progressively upwards sloping 200SMA below, it looks like there is
quite a bit of bullish momentum building up. Further
evidence for a bearish correction at this stage is the
bearish RSI divergence.
Nonetheless, this could also be the turning point for
USD/CAD to resume the long term bearish trend, easily
visible on the weekly time frame. All large banks have
forecast USD/CAD to be trading around 1.1500 to 1.2000
within the next 3 months, and Bank of America even
forecasts USD/CAD to trade as low as 1.0867 to 1.0998
within the next 3 to 6 months.
I usually dont go by such long term forecasts, but considering
that all major banks are forecasting USD/CAD to drop to 1.2000
and lower, seems to give credibility to such forecasts.
But, staying in the more immediate present a correction
to the downside per the bearish Butterfly pattern seems
viable.
Trade short 1 (RvR ratio 2.66)
Entry: Close below 10SMA and 1.3231
S/L: 1.3420
T/P 1: 1.2998/80
T/P 2: 1.2729
Trade short 2 (RvR ratio 2:1)
Entry: Close below 1.2729
S/L: 1.2831
T/P 3: 1.2527
As always, scale out your profits and adjust stop/loss to
suit your personal risk management profile.
Happy trading
offering a chance to short this market as it starts a
corrective move towards the end of this month.
With the current DXY strength and potential for oil prices to
drop, USD/CAD should remain bullish in the longer term but
only after a much needed correction. By looking at the
progressively upwards sloping 200SMA below, it looks like there is
quite a bit of bullish momentum building up. Further
evidence for a bearish correction at this stage is the
bearish RSI divergence.
Nonetheless, this could also be the turning point for
USD/CAD to resume the long term bearish trend, easily
visible on the weekly time frame. All large banks have
forecast USD/CAD to be trading around 1.1500 to 1.2000
within the next 3 months, and Bank of America even
forecasts USD/CAD to trade as low as 1.0867 to 1.0998
within the next 3 to 6 months.
I usually dont go by such long term forecasts, but considering
that all major banks are forecasting USD/CAD to drop to 1.2000
and lower, seems to give credibility to such forecasts.
But, staying in the more immediate present a correction
to the downside per the bearish Butterfly pattern seems
viable.
Trade short 1 (RvR ratio 2.66)
Entry: Close below 10SMA and 1.3231
S/L: 1.3420
T/P 1: 1.2998/80
T/P 2: 1.2729
Trade short 2 (RvR ratio 2:1)
Entry: Close below 1.2729
S/L: 1.2831
T/P 3: 1.2527
As always, scale out your profits and adjust stop/loss to
suit your personal risk management profile.
Happy trading
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.