Forex Majors Game Plan For Week of Feb. 10, 2020
Cory Mitchell, CMT
Broke support to the downside. Downward bias. Awaiting the next pullback-consolidation-and downside-consolidation-breakout for the next shorting opportunity.
Consolidating near support. Only interested in short-term trades at the moment, as the price is moving mostly sideways on the daily chart and in a mostly narrowing pattern.
Consolidating near resistance. Downside breakout provides room for price to fall to support starting near 108.50. There is resistance above the consolidation, so an upside breakout is only tradable on the small timeframes at the moment, unless we start climbing above Dec. highs.
Price has already rallied off support. For a trading opportunity, it either needs to return to support or rally into the 0.9850 to 0.99 region and consolidate there.
Consolidating at the top of a descending wedge. Upside breakout—currently in play—is ideally traded on short timeframes with a trailing stop loss. Ideally, price breaks the consolidation to the downside, leaving lots of room to run down into support, starting at 1.30.
Also see USDCAD at Top of Descending Wedge.
Right near major support and consolidating. Upside breakout provides some room to run, but be conservative on the profit target. Downside breakout leaves no support. I prefer to use a trailing stop loss exit on this one.
Downward momentum. Awaiting the next pullback-consolidation-downside-breakout in order to get short again.
By Cory Mitchell, CMT. Join me on Twitter @corymitc.
Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.