Hi Traders! USDCAD forecast follow up and update is here. On March 9th I shared this “USDCAD Buy Idea With Two Possible Scenarios” post in Trading View. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
USDCAD H4(4 Hours) Chart Current Scenario
On the H4 chart, the price action didn’t follow my analysis, based on the aggressive approach (scenario 1) the price reached the strong support zone and then provided a short push to the upside delivering 80+ pips move. But then the price moved lower and we got a valid breakout below the strong support zone thus invalidating the bullish view here. Regarding the conservative approach (scenario 2) I mentioned that we may look for bullish setups after the price breaks above the consolidation zone. The conservative approach didn’t trigger here as the price didn’t break above the consolidation zone.
The market didn’t provide us any facts supporting the bullish view here. There was no bullish divergence in play here and also the price which bounced higher from the strong support zone didn’t break above the consolidation zone as well. Then as you can see in the image above how the price moved lower further and broke below the strong support zone after that, thus invalidating this bullish view. This is why we should always trade based on the facts and hints provided by the market and take the right actions according to that. Also, you should keep in mind that losses are part of trading we can’t expect every trade to go as per our plan and provide us profits. In trading, we can’t avoid losses but in order to be successful in trading, we should know how to cut losses early and how to manage the trade when the price goes in the opposite direction.
Note: You can watch my webinar on how to cut losses early here
In order to learn about this and much more, I invite you to join the Traders Academy Club and you can also get access to our complete watch list and trade report.
This is how the report looks like. A table with the hottest market opportunities, screenshot behind every pair and time frame (anything that is in blue inside the table is clickable and leads to a screenshot) + a summary in text format, kind of highlights. And of course, Live Market Analysis every single day.
If you have any further questions, don’t hesitate to drop a comment below!
To your success,
Vladimir Ribakov
Certified Financial Technician
