Simon Alagbe identifies a descending triangle on USD/CAD's daily chart, signaling a bearish trend. He sets a sell-stop entry at 1.40027 with take-profit at 1.39681 and stop-loss at 1.40904, while monitoring U.S. retail sales and consumer sentiment data.
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Good morning, you are welcome to Rally Academy's daily market analysis. My name is Alagbe Simon, a market analyst with Rally Academy. Today, the 15th of May in the year 2020, we would be looking out for trading opportunity on USD/CAD. This is USD/CAD. On the daily charts. And then looking at this instrument closely, one will notice some very important points on it, especially on this daily time frame, somewhere in this region, and then somewhere also in this region. But in the last, um, 3 eyes on this instrument, one will notice that that we've been having lower highs on USD/CAD. Let me just, um, quickly mark that out too. Okay, so this is, um, showing to us that, um, gradually the bearish trend is about to start on this instrument. And what we have in here is a descending triangle. So we have a high here, a lower high and another lower high within this triangle. Because if I connect this point to this side, we would be having a complete triangle. Okay, so we have something that looks like a triangle, a descending triangle, which is signaling some bearish move. On this instrument. And let's quickly go to the 1-hour time frame so that we'll be able to pick our entry point on this instrument, having in mind that we are looking overall on the bearish move on this instrument for today. Okay, so this is the instrument on the 1-hour time frame. During the last analysis, we're able to pick out this trendline. So yesterday the instrument was able to successfully close below the trendline, and the following candle also confirmed the bearish move that is expected on this instrument. And, um, looking at, um, this point, we had a low here. So the current low on this instrument now is lower than this last low. Once this instrument is able to close lower than this last low around this price region, which was the marked out sell point for this instrument on our last analysis. So we should be looking at having our sell trade somewhere around this region, and then we can target another level of low on this instrument, which is around this price region. So we have another low at this point for our take profit. So we have our sell trade from here Then we have our TP at this point. Okay, so for us to be able to take advantage of this move on this instrument today from this price level with a target at this price level, what would be utilizing is the pending order. So we come here to the new order, we change it to a pending order, then to a sell stop. At price level 1.40027, and then our take profit is at 1.39681. So we can have our stop loss at, um, this price level that's, um, above the recent high on the instrument. That is 1.40 904. So we place the trade and we're expecting to make some money off this move on USD/CAD. Definitely once USD/CAD gets to this point, we should be looking at, um, taking our profit. And then on the long run, if you look at it on the daily chart, we'll see that there's even more room for us to make more money because we should be looking at USD/CAD retesting this support line or this support price region on the daily chart. So there's even more room to make money, especially once the instrument continues to trade within this descending triangle. More room to make money on the bearish move on this instrument. So let's quickly check, um, on the fundamental if you're expecting any key economic data for today. Okay, so this is forexfactory.com, and today is May 15th. So we are— by 1:30, we're expecting core retail sales as well as some of the retail sales data from the United States. And later by 3 PM, all this time is GMT+1. We're expecting prelim UOM consumer sentiment. So at this time also, depending on the outcome of this economic data, they will also have some slight impact on the instrument. But overall, we should still be very bearish on USD/CAD today. So thank you for listening, and let's make some pips from USD/CAD today. Thank you.
