USD/CAD is an uptrend producing basic price action cyclicity and offering trend continuation entries at the end of consistent pullbacks. Today's bullish reversal bar, though appearing to be a high test close, suggests the resumption of bullish activity back in phase with the overall trend. I'm looking at the following to take a position north:
- low test close of 15th August 2014 rejecting: - horizontal support (~1.0886) - 0.382 (38.2%) Fibonacci level from previous swing low, also coinciding with the above mentioned support level at ~1.0886 - 20 ema - trendline support - current daily bullish inside bar being an [good] omen of the impulsive wave of the trading cycle (after close above horizontal support, trendline support, 0.382 Fibonacci level, and 20 ema) - price action within bullish trendline
How to enter the set up:
- Entry 5 pips above high of today's inside bar (1.0903) - Set stop loss below mother bar (Friday 15th August close) - Target areas at previous swing high and above (possibly up to the 1.272 or 1.618 Fibonacci extension level) (Reward:Risk > 2:1)
good luck