Second analysis today goes to the USDCAD.

My USDCAD trade plan last week has ended in a take profit:

https://www.finlogix.com/analysis/20240228/usdcad-intraday-analysis-and-trading-plan-for-february-28-2024

Stay to the end to find out the updates I am seeing for the USDCAD.

While there are 5 remaining US major economic reports this week, Canada has its own share of 5 reports notably the unchanged BoC rate and tomorrow’s Employment Change and Unemployment Rate. Markets’ volatility remain elevated till Friday.

Re-assessing USDCAD’s high timeframe candles:

Yearly Candle: Still a Green Shaven Bottom since last check

Monthly Candle: Previous close is a Green Body with a Longer Tail Wick current is developing a Red Shaven Bottom

Weekly Candle: Previous close is a Green Body with a Longer Head Wick current is a Red Long Upper Shadow

Daily Candle: Previous close is a Large Red Body with a Slightly Longer Tail Wick current is a developing a Small Red Doji

Lowering high on the yearly view. Double monthly and weekly top candles depicting 1.36 resistance. Current weekly candle is bearish.

On the day, price is consolidating through yesterday’s lows and based on the structures I am seeing, there will be a further drop.

There are 2 bearish FVGs and current consolidation happening in the 4H chart.

The 4H 200-SMA is offering support but might be shallow as the 50 and 100 SMAs curving down agressively soon once the 2 bearish FVGs cannot be retested.

Live price is trading in the 23.60% fib retracement from 1.3180 swing low to 1.36 swing high.

I like to short the USDCAD again but need to wait potential mini break-out in the current consolidation that targets the 2 bearish FVGs above.

The short entry must be at least 50% of the bigger 4H FVG’s territory.

The stop loss is set tightly above the complete retracement of the smaller 4H FVG.

The take profit is the 50% fib retracement.

This is a catapult sell trade and can be a swing type with a 4.11 risk:reward score.

The 1.36 is a strong supply zone but if broken will nullify this bearish analysis.

Will give more time and room for this one.

USDCAD Intraday Analysis and Trading Plan For March 7, 2024

Mar 07 2024

Stop Loss -0.30%

Holding time 4d4hr

1.35460

Entry price

1.35862

Stop loss price

1