Bullish Butterfly on USDCAD showing Medium-Term Short
Ah my favorite currency pair! What we can see here is the formation of a bullish butterfly structure that may foreshadow the huge drop everyone is already expecting to happen very soon. Based on S&R levels, Target 1 seems to be more reliable and may see a bit of consolidation before the second drop to point D and the next S&R level. This level is also strong due to the fibonacci retracement levels that seem to agree with the aforementioned analysis.
It's important to be careful when trading gartley legs that are in-progress as the structure may not even form the way that we've predicted it so my entry order price is a little lower and more conservative than usual. Despite this, if everything goes to plan we are looking at a potential 300+ pip gain so there is some incentive to trading it.
Setup:
Entry: 1.31774
TP: 1.30106 or 1.28611
SL: 1.32112
It's important to be careful when trading gartley legs that are in-progress as the structure may not even form the way that we've predicted it so my entry order price is a little lower and more conservative than usual. Despite this, if everything goes to plan we are looking at a potential 300+ pip gain so there is some incentive to trading it.
Setup:
Entry: 1.31774
TP: 1.30106 or 1.28611
SL: 1.32112