Today I want to give you my analysis for the USDCAD pair. This could be a trading opportunity if the requirements are met.

Hello again my friends!

Today I want to give you my analysis for the USDCAD pair. This could be a trading opportunity if the requirements are met. So let’s take a look.


First, I want to show you the USDCAD 4H chart :

USDCAD

You can see that there is a possibility a triple bottom pattern to perform. This pair has been declining in the past weeks and this could be the end of the downtrend movement.

Normally, the rule is to wait for the price to break the trend line and then you can enter the trade. But I always look for something different…There is a piercing line candlestick pattern in the last 3 candlesticks, and this pattern is known as a bullish reversal pattern.

 

So, I have 2 scenarios for this pair. First scenario, BUY if the price closes above the horizontal line :

USDCAD

We have to wait for the price to close above this line for a confirmation signal. If the price closes above this line, enter a long position. Put the stop loss around the support level, and for the profit target, adjust your profit target to 1:2 or 1:3 risk reward ratio based on your stop loss.

 

Second scenario, the price could move down to the support area before starting the reversal movement.

USDCAD

The picture above is the USDCAD hourly chart. What we have to do is to look for BULLISH DIVERGENCE. If the price moves down and then bullish divergence performed, then you can enter a long position.

I will wait for either first or second scenario to be met and then I will enter the trade.

Hope this helps!
Rico FY