USDCAD - Wait/Trade the Pullback & Trade Trend-Continuation

13 thg 12, 2020

Hi Traders!
The market is in an overall Downtrend.

We'll start the Multiple Timeframe Analyis with the Weekly.
Here is it:



As you can see, we firstly had an Uptrend.
It made a Trending Move, then it consolidated in the wedge before moving higher.
After that, it came back all the way down to the Wedge Level.
Recently, it even broke this level too, which results a cancellation of the Up-Trend.

Let's move on to the Daily-TF:



Here you can see how the market broke the Level.
It moved in a descending Triangle, then it made lower Lows and eventually broke out.
Now we can consider the Weekly Trendline.
We should wait for the Pullback, because the pair often comes back to the Trendline.
In addition, by trading near this important structure, we can set our SL above the "safe" Weekly Trendline.


Let us move on further to the H4-TF:



After the bearish Breakout of the Structure Level, we can identify this important descending Parallel Channel.
We expect a Pullback to the Level 1.28500 or - in case of a Range - until the market reaches the Trendline.
You can either trade or wait for the Pullback, but this idea is
only on trading the Trend Continuation after the Pullback.

Lastly, here is the H1-Timeframe:



The most important thing is now to wait (when you want to trade the Continuation).
We have to observe the situation to evaluate the Price Action.
It is also possible, that the market moves down lower without a Pullback, but the likelihood isn't high.


We recommend to trade in the direction of the Trend.



Thanks and successful Trading :)!