Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
The Usdcad appears to have a nice trading opportunity on the 4hr timeframe. The weekly chart shows what appears to be an attempt at setting up a right shoulder. After the trendline break that is shown on the weekly chart, the bulls went up to test the 1.0800 resistance area, before falling back. Currently, the left shoulder appears to be at 1.0225, so I am hoping to take advantage of a retest of that support, at least, before I expect to see some major pullback on this pair. At the time of writing this article, the screen shot captured a rate of 1.0315.
Take a look at the 4 hr chart below. There is a break in the up trendline, which was followed by a bounce to retest it. A bearish engulfing candle has since been formed. This is where I recommend a short. My target for the short is 1.0225. While I was writing this, some major news got released and threw things off . At the moment, the 4 hr resistance line is being tested again. It might be a good idea to watch on the sidelines for the moment and see what happens at 1.0365 . If the 4hr closes back above the trendline, then I will be looking for bullish setups.
If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions. If you would like to get more help then you can try our premium trading service.
Thanks as usual for reading. I always welcome any questions or comments you might have.
Other useful blogs:
Forex Crunch: Indicators- 3 Reasons Why They Will Hurt Your Trading
The GeekKnows- Daily commentary on eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
