USDCAD’s August 5 strong buy side liquidation paved the way for a 78.60% corrective fib pullback. Longs on the books.

As a result, my July 29’s short trade plan has exited in another loss after holding for 6 days and 20 hours only:

https://www.finlogix.com/analysis/20240729/usdcad-intraday-analysis-and-trading-plan-for-july-29-2024

A new overall record of 3 wins and 12 losses.

There are 5 upcoming high impact economic reports in the US and 5 as well in Canada this week.

Re-assessing USDCAD’s high timeframe candles:

Yearly Candle: Still a Green Body since last check but with a Longer Head Wick

Monthly Candle: Previous close is a Green Body with a Longer Tail Wick current is a Red Long Upper Shadow with a Medium Body

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

Daily Candle: Previous close is a Red Body with a Longer Head Wick current is a Green Long Lower Shadow with a Small Body

In today’s analysis, I will be using August 5’s swing high to intraday’s swing low as the retracements’ points of view.

Based on these moves, USDCAD just made a golden pocket at the retracements’ 78.60% fib level which is considered an excellent long reposition after considering the previous up wave the major pair had.

To maintain the yearly uptrend, the USDCAD bulls need to solidify today’s swing low levels.

Failure to do so can lead to challenging the previous up wave’s starting point as the bears are seeking to liquidate the sell side levels underneath it.

I will switch to a long position entering through the current bullish 4H candle targeting the take profit towards the 38.20% fib level while limiting the potential loss at the 1.3619 mark only.

It’s a good risk to reward setup from capitalizing this pullback.

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top tier banks via ACY Connect.

All trade ideas I share are my own views and for my own trades only.

USDCAD Intraday Analysis and Trading Plan for August 19, 2024

Aug 19 2024

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