Technical Analysis USDCAD : 2014-08-21


Good afternoon, dear traders. Here we consider the USD/CAD behavior on the daily chart. We can observe that the daily trend is destroyed, and at the moment the price is forming a bullish trend on the daily timeframe. DonchianChannel peaks are being updated, and ParabolicSAR confirms the trend.

USD CAD

There is no contradiction on the part of the RSI-Bars, which started to move into the green zone, keeping away from the trend line. To be more confident in the movement direction, it is recommended to wait for the breach of a new oscillator peak. A pending sell order can be opened above the fractal price mark of 1.09900, which is confirmed by the DonchianChannel upper boundary. The preliminary risk mitigation is recommended to be placed below the new support at 1.08491. This level was confirmed by Bill Williams fractal and ParabolicSAR historical values.

Little probable, but possible the trend to reverse, due to unforeseen fundamental factors, especially as the weekly downtrend was being registered. In this case, a new bearish momentum is possible to happen: a short position is to be opened only below the support at 1.08491. This mark intersection would mean the price reversal into the weekly trend channel. After position opening, Trailing Stop is to be moved after the ParabolicSAR values, near the next fractal trough (long position), or peak (short position). Thus, we are changing the probable profit/loss ratio to the breakeven point. As soon as the breakeven point is achieved, the opposite order is to be closed.

PositionBuy
Buy stopabove 1.09900
Stop lossbelow 1.08491

PositionSell
Sell stopbelow 1.08491
Stop lossabove 1.09900

Dear traders. You can see the detailed report of the author’s account by clicking here.

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