USDCAD: Buy And Sell Signals

If we look at the 1H chart, we can see a rather interesting trading opportunity. The market moves upward in the bullish trend. The price consolidates in the borders of a triangle.

It looks like the breakout upward will be good for opening buy trades with stop-loss orders below the uptrend line and profit targets at the resistance levels. But higher timeframes don't look so bullish, and the price is not far from resistance lines.

What does it mean?
It means that the market can be stopped and reversed after a short term upward movement, and the market will move lower. In order to catch this downward movement too, it's possible to place pending orders for sell below the uptrend line and 1.32500 support level. For such sell trades, stop-loss orders must be placed above the uptrend line and the local swing high. Profit targets should be placed at the support levels.

So, the price is in the important zone now, and we can get trading opportunities in both directions. For any trade, we have to use stop orders and proper money management.

Comment:

The buy trade could be closed with profit. Now it is time for sell trades.