USDCAD took a strong Bull ride last week. From the beginning of the current week, the price has been Bearish. The last week’s resistance has been held and we have seen some strong H4 Bearish candles. The first two H4 candles came out as strong Bearish candles as well. One of them made a breakout at the yesterday’s lower low. This means there is a good chance that the pair might offer us a short entry later today. Let us have a look at the H4 USDCAD chart.
USDCAD Price Action Analysis – 21st Mar 2018
Have a look at today’s H4 candles. One of them made a breakout at the level of 1.30440. The current H4 candle seems to make a correction as well. If the price goes to the breakout level and produces an H1 Bearish Engulfing candle, then selling the pair would get us some green pips. Let us have a look at the summary of the trade.
- Sell Limit Order: 1.30440
- Stop Loss: 1.30750
- Take Profit: 1.29600
- 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
The risk and reward ratio is 1:1 here. However, this is one of the best trade setups comparing to the other pairs. Now the main thing we have to wait for is that the current H4 candle is held by the breakout level and then the H1 signal candle. If both of these things take place, then I assume that the price would hit our target level at a very good pace. Meanwhile, let us be patient and keep our eyes on the pair.
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