Simon Alagbe sets up two pending orders on USD/CAD for April 10th, 2020. A sell-stop at 1.39192 targets 1.38943 if the descending triangle breaks down; a buy-stop at 1.40636 targets 1.41010 if it breaks up. U.S. CPI data at 1:30 PM could trigger the move.
Chapters
Good day, and I'm wishing us a happy Good Friday. My name is Alagbe Simon, a market analyst with Rally Academy. This morning we would be looking at a trade opportunity on USD/CAD. Okay, so let's move to our MT4. This is the USD/CAD on the 4-hour chart, but before we look at the technical setup For this instrument today, let's also check if there will be any important economic data that will be coming out from any of these two countries, United States or from Canada, that might further impact the movement on this pair today. So let's get to check on Forex Factory. Okay, so this is forexfactory.com and today is. April 10th. And, um, we can see that my time is also synchronized with the local time. So if yours is not, what you just need to do is to click on this time and then ensure that it is synchronized GMT+1 if you are in Nigeria, or wherever you are based, just adjust your time zone according to your location, and then you save the settings. Once that is done, return back to the home page by clicking on this. So your time will be synchronized so that you would be able to work with the time the economic data will be released. So we are expecting 2 from the United States today by 1:30 PM, 2 very important economic data, the CPI and the core CPI data. They are a measure of inflation In the U.S., so when these two data comes out, that's when we'll be able to see some figures on this actual column. And whatever comes out at that time will determine if United States dollars will be strengthened or become weaker than it is at this time. And then there is G20 meeting, which is also an ongoing meeting. Is an all-day meeting, so that we might not be able to price that. Into our trading except there are some feedback from that meeting. So let's return back to our charts. Okay, so from what I can see on this chart, it's looking as if, um, one can pick out a descending triangle on USD/CAD. Although if you look at USD/CAD for a couple of days now, it has actually been trading lower and then go to this particular level, then add some retracement before returning back to what we have been having, which is the downtrend. Uh, but, um, at this point USD/CAD failed to make a lower low. The force acting at this point would not allow this instrument to go lower than this region. Then it's pushed up, had a retest on this particular point again, then pushed up slightly and is currently approaching that same zone. So we need to mark out that zone, although it is not this line, it is a zone. A zone around this line is really, really a very key one. There is a force that is acting against price that is trying to push up price around this region. So USD/CAD has not been able to go below it in the last 3 days that it has been testing this particular region and is also approaching that same region at this time. And okay, so let's also draw the trend line for, um, the retracement. Okay, so if you look at the highs, we discover that the highs are lower than the previous one, which means it's on a downtrend. And even as at this point too, this is lower than the previous highs. And then the lows, apart from these which failed to go lower than these, has also been lower. So we had a low here, this is another low at this point, lower than this low. But this current point, we are approaching that same very strong support region once again. And, uh, based on what we can see here, this triangle formation— USD/CAD has actually been trading narrowly within this triangle, this descending triangle. So how would we be able to pick out points of entry on this trade except USD/CAD is able to break out of this triangle? Then there will not really be a very strong direction on it. So we should be expecting, or we should be planning to trade breakout on this instrument. So it should break out either out this way or break out of this upper trend line, any of the two. Then that would be the next direction for this instrument. So for it breaking below this support, we can see that at some point it had We can see that this support region has actually been a very strong one for USD/CAD, so it has not been able to successfully go below it. So we can just have our entry points for a sell stop below the lows. These are the lows, the recent lows on USD/CAD. It has not gone below these 2 lows in recent times. So once it's able to go below these lows Or if any of this candle is able to close below this support, then we are sure that USD/CAD has broken this support line and we should be looking out for more opportunities to sell. But we should not just enter a sell immediately goes below. It should be able to touch this price level that I've marked out. So from this price level, we can have our sell trade and then have our take profit somewhere around this level. So we can have our take profit somewhere at this price level. Then, um, for the breakout of this side of the triangle, we should be looking at having a trade, a buy trade around this price, because at this time this is where USD/CAD is. Okay, so it's currently around this region, so we need to still adjust up, um, our entry price, especially if this particular candle pushes up from here. So should adjust it slightly up to around this level. Okay, so around this level, once USD/CAD is able to break to this point, we can have a buy. And then have our TP at this price level. So for some of us that might not be before our system, when USD/CAD will get to any of these 2 marked, uh, price level, 1.406636 for a buy and then 1.39192 for a sell, what we would be doing is that we need to place pending orders for these 2 positions. So we go to our new order, and because we're expecting— okay, so we set— okay, so we'll set a pending order. We go to new order, um, so we change from instance to pending order, then to sell stop, and we enter the price level 1.39192. So we place that, and then For the break above this line here, so we have our entry points also for a buy stop pending order. Then we go to buy stop, we change the price to 1.40636. 40636. So we have the two pending trades waiting for a breakout. On USD/CAD. Let's also quickly add our TP to the 2 trades. For the sell stop, our TP— modify or delete order— TP is at this price, 1.38943. Modify. So we have our TP added. And then for the other one, the buy stop, our TP is at 1.41010. So we've added the 2 take profit zones. So thank you very much for, um, watching the analysis today and enjoy the Good Friday celebration.
