USDCAD Bear Flag

The USD/CAD was in a powerful uptrend for a significant period of time…

usd_cad_daily_uptrend_001

 

But recently, the USD/CAD has shown signs of possibly turning to the downside…

usd_cad_showing_signs_of_bear

 

Because there is SO much room to the downside caused by the uptrend…

room_to_downside

 

It makes sense to zoom in and look for Bearish Entries…

usdcad_zoom_in

 

On the 1 Hour Chart, there is a nice looking bear flag that we could take advantage of…

usdcad_pull

 

An entry would make sense if it breaks below the recent low…

usd_cad_stop_entry_001

Once again, a large target can be used because of the space created by the Uptrend…

target_001

 

And that’s how I’d trade the USD/CAD Bear Flag 🙂

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  • Wong Jun Jek

    Awesome Nathan, less words, clear and easy to understand!

  • aristides

    nice move, congratulations!

  • Andrew Barry

    Thank You for a great post. This looks to potentially be a great trade.

  • Doug

    I agree with the assessment that the pair is set to sell off but before it does that it looks like it will be heading to the upside a few hundred pips first before coming back down.

  • Chuks

    Great post. After breaking down the round figure 1.10000 last week with great momentum, it would appear this pair is indeed headed lower. I had bought off 1.0932 but price action has been lackluster since then. Not only have I liquidated my long position, I do think that indeed the bears are getting antsy and may be flooding the market soon enough. I have identified a good sell point at 1.0956 and am currently short with stop little above the round figure. I would be eyeing a break or failure to break 1.0857. For me, breaking down that support would be the last we hear of the bulls until further notice. Good luck if you eventually join!