Is the End of the Uptrend Here?
The USD/CAD is actually another example of a Boomerang Set-up, though in this case counter-trend.
We teach our novice students to focus on With the Trend trades, so please use discretion when considering a reversal type of trade. One of the benefits of reversals can be that there is a lot of open space for price to “fall” back down through.
In this case, you could execute a sell and use a Weekly level as your target. By taking a look at the Weekly chart, you can see how easy it would be for price to fall back to the 1.06 area because there is very little traffic in the way and the Risk/Reward ratio is very appealing with this type of trade:
Ready to Buy?
A basic STRIKE entry here should be high probability and great R/R!
Once again, zooming out to the weekly chart shows there is definitely room for continuation:
That’s it for today’s look! Thoughts and comments welcome!
Winner’s Edge Trading, as seen on: