Simon Alagbe identifies a sell setup on USD/CAD with entry at 1.39171, take-profit at 1.38812, and stop-loss at 1.40178. Bearish engulfing candles on the 4-hour chart signal the trade, while GDP data and the FOMC statement at 1:30 PM and 3 PM GMT+1 could drive volatility.
Chapters
Good day, my name is Alagbe Simon, a market analyst with Rally Academy. Today, the 29th of April, year 2020, we'll be looking out for trading opportunity on USD/CAD. Let's take a look at CAD on the 4-hour chart, and we can see that the instrument is currently trading downward. This is a bearish engulfing candle. So we had another bearish engulfing candle also here on the 4-hour chart, so showing to us that the bears are fully in charge of this market, and any trade opportunity one should be looking out for on this instrument should be on the bearish note. So let's turn to the 1-hour chart for us to pick the entry point on this instrument. Okay, so we should be looking out to have a sell trade from this price level. And then targeting about 30 pips from this price level. Okay, let me just, um, check this if it's about 30 pips from the entry price. Okay, this is about 41 pips, okay, which is still good enough. Well, let's just adjust mildly to about 30 pips from the point at which we entered the trade. That's about 35 pips, which is great. And then our stop loss will be above the recent high on the instrument, which is somewhere around this price level. So let's quickly place the trade. Go to new order. We change this to pending order. And then because we're expecting it to trade lower, get to this point, trigger sell trade, and touch our TP, we would be going for our sell stop. at price level 1.39171, and then our take profit is at 1.38812, with our stop loss at 1.40178. So we'll place the trade and we are waiting for USD/CAD give us some money from this price level to this price level. Let's quickly check on the fundamental front also for this insurance. So today we're expecting advanced GDP, advanced GDP price index. Out of these 2 GDP data, the Federal Reserve, they pay more attention to advanced GDP price index because it is less volatile compared to advanced GDP. So also, as traders, I will also advise us to pay more attention to this by 1:30 PM GMT+1 to make some money off USD/CAD. And then pendulum sales by 3 PM, FOMC statements, federal funds rate, and then to round up the day is FOMC press conference later on by 7:30 PM. So this is a lot of opportunity for us to make money off USD/CAD today. So let's take advantage of this both on the preset trade and then also on the fundamental front. Let's make some money off USD/CAD today and have a great day.
