USD/CAD: Bearish Sentiment Strengthening
IFC Markets | Jun 23, 2014 09:45AM ET
The price moved within the daily and weekly downtrend channel: scales consistency has been observed. However, within 24 hours of the market functioning, there was the acceleration of the downward movement with the daily resistance line breakthrough.
The ParabolicSAR trend indicator has updated its value at this line level, which confirms the bearish sentiment strengthening. It is worth paying attention also to the signal line breakthrough and the PivotPoints first resistance level: this moment is marked in yellow. There are no contradictions on the part of the RSI-Bars oscillator.
Pending sell order is to be preliminary placed below the closest minimum at 1.07196. Stop Loss can be chosen at the last peak at 102.344, which coincides with the PivotPoints historical support values: support and resistance are interchanged. Opening a position, it is recommended to wait until the ParabolicSAR values cross the preliminary Stop Loss level. Then Stop Loss should be moved after the parabolic values every 4 hours after the order execution.
Thus, we can optimize the return/risk ratio in our favor in the process of changing market conditions. If you decide to take a break from the market, the automatic Trailing Stop can be placed, taking the distance between the two previous fractal peaks into account. This distance is indicated by the double arrow on the chart above.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.