In this Rally Academy daily market analysis, analyst Alagbe Simon examines the USD/CAD pair on May 27, 2020. He notes that the daily chart’s descending triangle was broken to the downside, turning a key support level into resistance and indicating further bearish potential. He then drills down to the 4‑hour and 1‑hour charts, expecting a retest of this new resistance before the downtrend continues. Based on this technical view (no high‑impact economic releases expected), he proposes two pending orders: a buy stop at 1.38098 with a take‑profit around 1.38590 (≈39 pips) if the price retests and breaks upward, and a sell stop at 1.37413 with a take‑profit at 1.37032 if the price continues lower. The analysis is purely technical, emphasizing chart patterns, timeframe alignment, and precise entry/exit levels to capture short‑term moves on the instrument.
Chapters
Good day, welcome to Rally Academy's daily market analysis. My name is Alagbe Simon, a market analyst with Rally Academy. Today, the 27th day of May in the year 2020, we'll be looking out for trading opportunity on USD/CAD. This is, um, the instrument on the daily time frame. And then from our previous analysis, we're able to identify, um, this region on the instrument as, as well as this previously Okay, so we had a descending triangle on the daily chart. So USD/CAD was able to successfully break to the downside of, um, the descending triangle that was, um, yesterday's candle. You can see this massive bearish move on USD/CAD yesterday. This break to the downside has given us a new move on this instrument, which means that Um, with the break below, um, this very key support which has now turned to a resistance, there is more room for us to take advantage of some sell opportunity on USD/CAD. That is on the long run because of the break to the downside. So let's look out, um, on lower time frames to be able to pick out trading opportunity for today. This is the instrument on the 4-hour chart, and then we could see the break, um, a weak candle of yesterday on the 4-hour chart. So this was the candle that broke the support to the downside, and then we had, um, this candle also showing to us that the bears are still dominating the market. But at this point, due to this stalling we're having around this region, I'm expecting USD/CAD to retest this, um, resistance which used to be a support as at yesterday before this new bearish move will continue. So this means we're expecting a retest on this resistance which was a support yesterday, and then the bearish move will continue. So today we should be looking out for opportunity to take advantage of a proposed retest on this resistance before the bearish move will continue. So let's look out on the hourly chart. Okay, yeah, so also on the hourly charts we can, um, see that, um, support level which was broken yesterday which has now turned to a resistance. And as, um, we saw on the 4-hour charts, I mean, we see during the retest on this resistance before this new move will continue. And for us to be able to have a buy trade because for this instrument to retest this resistance, it must surge higher and then be above this, um, region somewhere around this price level. I can still slightly draw this down. Okay, so price region around this price level. So we can have our buy trade around this price level and then have our take profit before this, um, resistance which used to be a support. So before this resistance which used to be support, we should have our take profit. And then we have our entry point for the buy at this price level, even though the overall trend on this instrument still remains bearish. Or it should retest this resistance before the continuation of this new movement. So continuation, so you buy trade from this price level and then a retest on this resistance before the move will continue. That is provided there is a breakout to the upside from around this region where price is currently trading. So it's currently trading around this price level. So a break to the upside or a retest on this resistance will give us a buy trade from this price level, and then I take profit at this price level. And then peradventure there is a breakout to the downside, so we should be looking at having a sell trade around this price level and then having our take profit also around this price level. So for the sell trade, we have our sell at this price level and then our take profit at this price level. And, um, for the retest, we're expecting a buy from this price level and then our take profit before this price level. We also have to note that, um, today there is no expected high-impact economic data. So this instrument will basically trade on technicals, um, for the rest of the day, except maybe there's a release of a tweet from President Donald Trump. So in the absence of that, it's just strictly technical trading today. So what we have marked out today should be the expected move on this instrument, either a retest on this resistance or the continuation of this sell trade up until this price level. So let's quickly, uh, place the trades in line with this marked out point. So we go to our new order and then we start with the buy from this price level, pending order, a buy stop At price level 1.38098, and our take profit should be before this resistance. So let's say 10 pips away from this resistance. Take profit will be at 1.38590, 1.38590. 90. So we place that. So we have our take profit slightly before this resistance. I can also adjust that slightly down, okay, around this price level. So that's around 39 pips from our entry point, 39.5 pips away from our entry point. So, so for the other direction, we also place, um, a sell trade. So the same way, pending order. This time around, a sell stop at price level 1.37413 and our take profit at 1.37032. So we place that too and then await USD/CAD to move in any of these 2 directions. For us to make some very good money for ourselves today. So let's take advantage of this movement on this instrument and make some very good money on USD/CAD today. So do enjoy your day today and make some money.
