The US Dollar lost a lot of ground recently against the Canadian dollar, as the latter one recovered. However, if looks like the USDCAD pair may complete its current bearish cycle soon and might start to trade higher once again.
So, I think we should be looking for a buy trade once the USDCAD pair drops near the 1.3300 support area.
Technical Analysis
H4 – 4-hours chart highlighting the scenario in which the USDCAD pair may find support around 1.3300.
Buy Entry:
H4 – If the USDCAD moves down, finds support around 1.3300, creates a divergence and then after a consolidation period trades higher, then we can enter a buy trade once it breaks the possible trend line resistance as shown in the chart.
Target 1: 1.3600
Target 2: 1.3750
Stop Loss: 15 pips + below the last low created before entering the trade.
Video Explanation:
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