Trade Recommendation: USDCAD
This trade recommendation is setting up quickly and requires prompt attention
The bias is to the downside with the price trading below the Daily Pivot Range (blue dots), therefore this level is key resistance.
All 3 Daily Pivot Moving Averages are turned down (red, yellow, white lines). Use this as confirmation that the price should hold at the resistance of the Daily Pivot Range.
The action to take is to go short just shy of the low of the Daily Pivot Range, at about 1.2297. The handle price of 1.2300 should provide additional resistance as these even handled prices tend to be important psychological levels.
Place the stop loss at the Opening Range high of 123.22 and the profit targets at the previous swing low as stated below.
Note: If triggered, look for the trade to play out over a period of 24 hours and if no significant move after 3 hours, exit the trade.
Entry Price: 1.2297
Stop Loss: 1.2322
Profit Targets: Profit target 1.2259. Once the price breaks down bring the stop loss to 1.2305, just above resistance of the 1.2300 handle price and the Daily Pivot Range high.
Disclaimer: The writer has no positions in the forex markets but does engage in short-term trading of forex and futures.
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