Premarket Prep USDCAD 05082020

This is my pre­mar­ket prep for today’s Euro­pean ses­sion for the Forex pair USDCAD. This prep builds off of my week­ly trade plan I made here:

USDCAD – Week 19 Trade Plan

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The pur­pose of a pre­mar­ket prep is to find setups with­in my week­ly trade plan bias.

Non-con­jec­ture obser­va­tions of the market

• Trend: MN1 up, W1 up, D1 down
• Month­ly Inside bar @ MN1 QHi after clean ral­ly test­ing this level
• Price above MN con­ter­mi­nous sup­ply line
• No break from W1 QHi yet (can­dle hasn’t com­plet­ed yet) after being reac­tive with W1 Sup­ply ZOI & Week­ly con­ter­mi­nous sup­ply line
  • Out­side of KC in rang­ing market
• D1 Bear­ish Engulf­ing reject­ing D1 Sup­ply ZOI & D1 con­ter­mi­nous sup­ply line and reached D1 QLo & D1 Demand Zoi & D1 con­ter­mi­nous demand line
• H4 clean arrival at H4/D1 QLo (near low­er KC in rang­ing mar­ket) after tak­ing our pre­vi­ous Q point and form­ing a new one, no H4 Demand ZOI estab­lished yet around this lev­el, next one at D1/H4 swing low 1.385
• M30 clean down­trend, price below VWAP & low­er KC
• Mar­ket Profile
  • Price below yesterday’s low 1.395, VAL & range

Sen­ti­ment — Bearish

Pos­si­ble Trade loca­tions ‑Short

• Below Prev. day low 1.395, M30 VWAP, low­er KC

Cons for short

• A hold above Prev. Day low / M30 VWAP cross or BO
• D1 Con­ter­mi­nous demand line being reactive

Objec­tives Today

• Go with Week­ly Trad­ing Plan bias