Closure of 1D candle inside previous sideways consolidation will suggest lack of bull momentum and may give opportunity of short sell.
USD/CAD
Updated: Sep 4, 2019
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Updated: Sep 4, 2019
Closure of 1D candle inside previous sideways consolidation will suggest lack of bull momentum and may give opportunity of short sell.
It hit 1.3224, stop grabber completed.
All condition met on 1D as well as 1H time-frames, so short sell trade was entered. This is how conditions met: recent downward move appeared to be faster and bigger than previous on 1H till closure of the day. RSI as well as MA's crossover took place by the time third candle of today on 1H completed. 1D candle closed below trend predictor. Nevertheless, we have to put SL at entry point to stay at 0 risk during BOC rate statement which is due to be released today at 14:00 GMT.
BOC is not cutting rate today. If statement, scheduled to be released at 10 a.m. EDT, doesn't come dovish; USD/CAD will continue to fall. Technical scenario mentioned in the analysis will be strengthened. Nevertheless, we should place S/L to break even point before release of BOC interest rate and statement today in order to stay on safe side and avoid risk.