USDCAD took a huge Bullish move on the H4 chart. The last Friday’s Daily Candle has been an Engulfing candle. This might push the price to go towards the North. Today’s first H4 candle came out as a Bearish Candle, but the next one came out as a Doji bar. There is a strong possibility that the pair might produce an H4 Bullish Engulfing candle and make its way to make new higher highs. Let us have a look at the H4 USDCAD chart.
USDCAD Price Action Analysis – 5th Feb 2018
See those consecutive H4 Bullish candles. Then, an H4 Bearish candle and the Doji candle were produced. Both of them obeyed the Support level of 1.24070. If this level continues to be the Support level and makes an H4 Breakout at the level of 1.24490, then we might get an opportunity to take a long entry on the pair later today. Let us have a look at the summary of the trade.
- Buy Stop Order: 1.24490
- Stop Loss: 1.24070
- Take Profit: 1.25100
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
Since the last trading day’s candle was a huge Bullish candle, thus there is a good possibility that we might get a breakout towards the upside today. However, since it is Monday, there might not be enough liquidity. If the pair does not get enough liquidity, then it might produce an Inside bar on the Daily chart. This means Buyers would be even more interested to buy the pairs tomorrow if today’s candle comes out as an Inside bar. So keep your eyes to go long on the pair even tomorrow.
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