USDCAD – SHORT – 16th August 2017

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USDCAD has been in a down trend for a number months and todays close has presented an opportunity to join in. We can see that the pull back that has been forming over the last 12 days has created a clear bear flag. The flag has now been triggered with a strong bearish candle that has closed on its low Our bias is to the short side so will look to time our entry on the hourly chart.

 

 

 

 

 

 

 

 

 

 

 

 

There are multiple factors of confluence on the H1 chart. Firstly we can see MACD divergence across recent highs, we have a clear support zone at 1.2656 that price has now broken to the downside and price has now closed beneath the 50 EMA.

We will look to take a short trade if price retraces back towards the prior support level, this also coincides with the daily pivot point. Stop loss will be placed above the R1 level with a target around the prior daily lows at 1.2400