USD/CAD: Finding an ideal entry for a longterm short!
Don't mind the bat patterns too much, they are far from complete and could be drawn in a dozen other ways I'm sure... They are just there to help me find a possible entry level to get short on this pair!
It could very well be that we will go all the way down from here-on but I'm betting on a retracement and possible test or re-test of yesterday's high and/or the longterm .618 retracement of the big monthly bat XA leg as drawn here:
I will post an update depending on where PA will take us next (up to a possible C or further down to a possible lower B than drawn here). I've already included 3 trades on the chart, the R/R is quite good. I'm also counting on reasonable resistance from the 1.3500 psych level, so my stops will be above that level!
I will be aiming for 2 shorter-term targets depending on which patterns develop (2 of many possibilities are in the chart) and 1 long-term target to get us to a lower-lying trendline (not visible here but you can zoom out!) or the .50 retracement of the monthly bat XA leg.
I really hope we get to that entry zone... We could also go above it for an ever better entry level: possible double top or a bounce of that .618 fib level! So I could be adding shorts there!
It could very well be that we will go all the way down from here-on but I'm betting on a retracement and possible test or re-test of yesterday's high and/or the longterm .618 retracement of the big monthly bat XA leg as drawn here:
I will post an update depending on where PA will take us next (up to a possible C or further down to a possible lower B than drawn here). I've already included 3 trades on the chart, the R/R is quite good. I'm also counting on reasonable resistance from the 1.3500 psych level, so my stops will be above that level!
I will be aiming for 2 shorter-term targets depending on which patterns develop (2 of many possibilities are in the chart) and 1 long-term target to get us to a lower-lying trendline (not visible here but you can zoom out!) or the .50 retracement of the monthly bat XA leg.
I really hope we get to that entry zone... We could also go above it for an ever better entry level: possible double top or a bounce of that .618 fib level! So I could be adding shorts there!
