The 15-minute chart is in a mark down stage and the 34EMA Wave is pushing the pair lower along the 34 period EMA low.
This is actually a short-term intraday swing entry that is setting up what I call a “one-thing-leads-to-another”. If the pressure can continue towards the area between 1.0110 and 1.0995 this fifteen pip area will be a cushion from which buyers could rally the market since there is still a sideways range on the daily. The initial level I want to see supported is the psychological 1.0100 level since the bulls have allows very little bearish momentum to build below it when prices pierce this support.
Ideally as buyers step in to support today’s move lower, the 15-minute chart should begin it’s transition to a more sideways accumulation or distribution market stage.
While I will me mindful of any break below 1.0100 it is not the stop-loss nor Point of Validity for this entry long. I will watch the previous days’ lows between 1.0996 and 1.0993 and look for support at this level, my stop will be five pips below or for traders with more risk tolerance, use the 1.0075 low from October 7 minus five pips.
In oder for the USD/CAD to rally higher (I am looking for a move toward the session high a 1.0183) the U.S. Dollar will have to rally and the crude oil market will have to pullback below 82.00 and find bearish momentum.