USDCAD Bat Pattern Butterfly Pattern Fibonacci Retracement Confluence Flat Candle Long Forex Trading Position

Snapshot:

Reasons For Trade:

1. Fibonacci confluence of 78.6 of overall impulse leg, 61.8 of another impulse leg, 161.8 fib extension of recent retracement.
2. Flat candle in zone suggesting new orders started from there which has fibonacci confluence with 88.6 Fibonacci retracement level and Fibonacci extension of recent retracement. This makes an area very string due to bat pattern formation.
3. Level on Level demand area. So we will have to combine.
4. This impulse leg has string ERC candles which broke previous structure.
5. Due to 161.8 extension of recent retracement this zone also has completion of Butterfly Pattern too which coincides with flat candle and bat pattern completion on the same point.

Stop Placement:

Below flat candle

Targets:

First: 38.2 fibonacci retracement
Second: 61.8 fibonacci retracement

Trade Execution:

1. Wait for confirmation in the zone.
2. As there are 2 fibonacci confluence levels creating level on level demand zone take multiple positions using zoning technique.

Concerns:

None

Planned News/Events Expected:

Whole next week is packed with USD CAD  news

MonOct 26	10:00am	USD		New Home Sales		468K	546K	529K
TueOct 27	8:30am	USD		Core Durable Goods Orders m/m		-0.4%	0.0%	-0.2%
		USD		Durable Goods Orders m/m		-1.2%	-1.1%	-2.3%
	10:00am	USD		CB Consumer Confidence		97.6	102.5	102.6
	11:20am	CAD		Gov Council Member Lane Speaks
WedOct 28	8:30am	USD		Goods Trade Balance		-58.6B	-64.9B	-67.2B
	10:30am	USD		Crude Oil Inventories		3.4M	3.7M	8.0M
	2:00pm	USD		FOMC Statement
		USD		Federal Funds Rate		<0.25%	<0.25%	<0.25%
ThuOct 29	8:30am	CAD		RMPI m/m		3.0%	1.2%	-6.8%
		USD		Advance GDP q/q		1.5%	1.6%	3.9%
		USD		Unemployment Claims		260K	264K	259K
		USD		Advance GDP Price Index q/q		1.2%	1.5%	2.1%
	9:10am	USD		FOMC Member Lockhart Speaks
	10:00am	USD		Pending Home Sales m/m		-2.3%	1.1%	-1.4%
FriOct 30	8:30am	CAD		GDP m/m			0.1%	0.3%
		USD		Employment Cost Index q/q			0.6%	0.2%
		USD		Core PCE Price Index m/m			0.2%	0.1%
		USD		Personal Spending m/m			0.2%	0.4%
	9:45am	USD		Chicago PMI			49.5	48.7
	10:00am	USD		FOMC Member Williams Speaks
		USD		Revised UoM Consumer Sentiment			92.6	92.1

 

Post Execution Review:

Pending

View it on TradingView

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