First of all it is important to mention and keep in mind that we are in a NFP week and we could expect the market to be rangy and make a lot of zig zags. Trade carefully, use smaller risk if you are not confident in the given setup or simply ignore it.
USDCAD looks pretty interesting in my point of view. As long as 1.2750 holds and price stays below it we can look for sell opportunities.
Technical Overview:
D1 – price is trading below 20 MA (even though we are seeing a spike up)
H4 – hidden bearish divergence
Entry:
H1
Scenario 1 – Look for the continuing divergence on the H1 chart to complete and then go short.
Scenario 2 – This is the more conservative entry. Simply follow the H1 up trend line, once broken you can go ahead and sell
Target 1: 1.2400 (daily support)
Target 2: Weekly 20 MA
Stop Loss: above 1.2750
Video Explanation:
Yours,
Vladimir
