I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Buy USD/CAD
Is this the bottom? This pair seems to have bottomed out 1.1050 forming a tweezer bottom. There's also bullish divergence present where price has been forming lower lows while the oscillator's lows are rising.
A dark cloud looms over the loonie in the short term due to comments by the Bank of Canada Governor. Dodge stated that the Canadian dollar has appreciated faster than expected and it seems that he's uncomfortable with the rapid gains. He's trying to "talk down" the Canadian dollar.
While I like this trade due to its technical setup. I really like it when the short-term fundamentals agree with my technicals. This combination makes for a strong case that a correction could occur in the near future.
The unemployment report from ADP came out today suckier than expected and I was surprised that the dollar barely budged. Is this the bottom for USD? It looks all traders are waiting for is a catalyst to buy bucks. I believe any upside suprises from any of the remaining US data releases such as ISM services on Thursday or the NFP on Friday will trigger a nice dollar recovery.
I'm going to buy USD/CAD at 1.1075. My stop loss (SL) will be 1.1015, below the recent low. My profit target (PT) wil be 1.1200.
Buy USD/CAD @ 1.1075 | SL: 1.1015 | PT: 1.1200
