Up, Up & away for USDCAD
I use multi-frame technical analysis to support my set-ups as higher time-frames are always more reliable. Therefore, lets look at UC by starting on the monthly time frame.
Monthly time-frame:
The ascending trendline, indicates that the current trend is bullish, thus looking for longs will be better than shorts
Weekly time-frame:
When dropping down to the weekly time-frame, it can be seen that the pair is moving in an ascending channel, due to its consecutive higher highs (HH) and higher lows (HL). further approving that looking for longs will be better than entering any short trade.
daily time-frame:
The last daily candlestick in the yellow bubble (15/03), indicated a reversal of the downtrend that the pair was currently in from the weekly key level 1.34500 to the monthly key level 1.33250. therefore a long position is now finally presenting itself.
Explanation for long-prediction:
1. the pair is showing an uptrend on both the monthly and weekly timeframes (higher time frames = more reliable & never trade against the trend)
2. the reversal candle around the resistance-turned-support key level 1.33250
3. last daily closure indicated a reversal in trend
long trade setup:
in the long term, i predict the pair reaching the 1.38750 (trendline), or the next major monthly key level 1.40000
however, in the short term, multiple TP's will be placed at the upcoming weekly and monthly key levels of
1.34500, 1.36500 and the final TP (that of the long term prediction)
i will look for an entry on the 4hr time frame, once it rejects the 1.33250 region again.
risk:reward ratio is within my trading plan.
Monthly time-frame:
The ascending trendline, indicates that the current trend is bullish, thus looking for longs will be better than shorts
Weekly time-frame:
When dropping down to the weekly time-frame, it can be seen that the pair is moving in an ascending channel, due to its consecutive higher highs (HH) and higher lows (HL). further approving that looking for longs will be better than entering any short trade.
daily time-frame:
The last daily candlestick in the yellow bubble (15/03), indicated a reversal of the downtrend that the pair was currently in from the weekly key level 1.34500 to the monthly key level 1.33250. therefore a long position is now finally presenting itself.
Explanation for long-prediction:
1. the pair is showing an uptrend on both the monthly and weekly timeframes (higher time frames = more reliable & never trade against the trend)
2. the reversal candle around the resistance-turned-support key level 1.33250
3. last daily closure indicated a reversal in trend
long trade setup:
in the long term, i predict the pair reaching the 1.38750 (trendline), or the next major monthly key level 1.40000
however, in the short term, multiple TP's will be placed at the upcoming weekly and monthly key levels of
1.34500, 1.36500 and the final TP (that of the long term prediction)
i will look for an entry on the 4hr time frame, once it rejects the 1.33250 region again.
risk:reward ratio is within my trading plan.
Penafian
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