Now that the market has digested yesterday’s news from the Fed Chair Yellen, we see that the loonie is reaching an up trend line well seen on the H4 chart. Along with the H1 divergence that is being formed at the moment, I think, that this is a wonderful buy opportunity forming. So here is the plan to join:
Technical Overview:
H4 – up trend line, band-to-band move on the bollinger bands, hidden bullish divergence
H1 – bullish divergence forming, close to 20 candles ride on the bollingers (19 at the moment)
Entry:
H1 – wait for the price to come near the up trend line and MACD to create another higher low (complete the divergence). Then once you get you trigger candle (bullish candle pattern) go for the long. Keep in mind in the long run we expect the USDCAD to continue lower!
Target 1: 1.2445
Target 2: 1.2500
Stop Loss: Below last low created
Video Explanation:
Yours,
Vladimir
