TRADE OF THE WEEK-Buy opportunity on USDCAD

At the beginning of the last week we saw an open just above the M_PP on the USDCAD pair then on Monday the pair tested the area and climbed higher. We got our long pending order triggered and the trade was immediately on profit. We got our TP hit before the pair lost all it's gains at the end of the week resulting from Trump's comments. At the close of the market the pair retested again the structure at M_PP and bounced again on the upside. As we can see from the chart, this is a very good trading opportunity if the price opens above this structure and retests it. We will be waiting for a buy position if the structure shows signs of support (using proper risk management according to our trading rules), and we believe this will happen as this will be the third time this area is tested in last couple of weeks.

Comment:

As we expected, on Sunday the pair started trading on market opening just few pips above M_PP at 1.31252 and then it re-tested the monthly pivot point which served as support and as our entry point too. The price bounced up on this re-test for more than 60 pips, and now at the moment of writing is retracing down, maybe for the next touch of M_PP. Our expectations are for a bullish move up to at least 1.3290.

Comment:

The USDCAD pair was unable to hold above the M_PP as support structure. On the 4 hours chart we can see that a head and shoulders pattern is formed so we can expect to see further down move from the pair.