USDCAD has been trending down of late, but has recently pulled back to a resistance level where it is forming an inverted hammer. I'll take this as a sign the downtrend is ready to resume, and so am entering at 0904 with my stop at 0966. My target profit is at 0703. I'm risking 62 pips to gain 201, so the reward/risk on this trade is about 3.24.
Are you still in there? At this point here a retracement is possible as we reached the former end April - begin May bottom. It is your cyan resistance zone.
motleifaul
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I wouldn't call this an inverted hammer. An inverted hammer stands at the bottom and is a buy signal.
The big lang green candle 2 days ago halted the down move.
ForceFollower
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Yes, it did. Now the question is - is there going to be a follow-through, or... is it going to go down?
I don't know, if the recent high is going to hold, but if it doesn't, I don't think it will make more than a couple of pips above it. Next I expect a decline.