Paper trade: Short USD/CAD @ 1.0573, Stop 1.0640, Target 1.0415

Taking a first position in USD/CAD short here at 1.0573 on a 4-hour moving averages cross-over (Figure 1). I've also placed a limit order to add more at 1.0519 below Fibonacci support (shown in Figure 1). Reason for this trade is that USD/CAD is moving away from an upper bound channel with a overbought stochastic reading, as shown in the daily chart of Figure 2. I've also considered going long AUD/USD, but AUD/CAD trend remains bearish. So I chose to short USD/CAD instead. Secondly, crude oil (and gold too) looks to be bouncing off an oversold level with a rapid move in 2 days from 72.43 to 77.39. Coincidentally, posted an intermediate term cyclical analysis video with a bullish outlook (affiliate link). They put out a better case than I do. USD/CAD might make a short-term upward bounce here because of a short-term oversold condition. However, there's evidently a lack of buyers in the past few hours (Fig. 1). The price has been sitting on support a bit too long in my view. Thus, I'm expecting it to break without a meaningful retracement (hence the short entry). A confirmation would be a break below 1.0530. Thus I have a limit order to short more below that price. I am risking 0.1% of my account on this trade. As you may have noticed, these charts are from Metatrader. I'm switching over to the MT4 platform as of today. Having played with its charting features for the past few hours, I'm quite satisfied with it so far. Although my needs are low as I was fine with the Oanda platform too (arguably the most simplistic platform out there). [caption id="" align="aligncenter" width="570" caption="USD/CAD, 4-hour"][][][/caption] [caption id="" align="aligncenter" width="570" caption="USD/CAD, daily"][]1[/caption]