USDCAD has been trending down for the past 3 months and for the last 4 days of trading activity it showed a strong retracement with several bullish reversal candlestick patterns that caused the form of a 2-day Inside Bar Setup with an Inside Pinbar Combination. Ideally a Buy-Stop Order at the High of the Mother Bar to capture the upward move with a stop loss at the low the recent bar and tight 1:1 RR Ratio for this Counter-Trend Move.
If a Fakey is formed, it is a signal that this Currency pair may resume its Downtrend and to capture that move a Sell-Stop Order below the low of the Mother Bar is ideal to go short going along its downward Momentum with a Stop-Loss at the high of the current bar formed.
If a Fakey is formed, it is a signal that this Currency pair may resume its Downtrend and to capture that move a Sell-Stop Order below the low of the Mother Bar is ideal to go short going along its downward Momentum with a Stop-Loss at the high of the current bar formed.
Comment:
USDCAD really did went up. It is now testing1.2988 horizontal resistance level but no close above the price point yet. Currently though, it's now in the process of making another Inside Bar Setup, a possible pause that could result to another upward breakout. Buy Stop on the Mother Bar is another good opportunity to capture the move.