USDCAD had a strong Bullish move on the H4 chart last week. The pair seems that it might come down to make some big-time frames’ correction. The Bearish move looks strong so far. Thus, it might be a trend changing move too. The price had a big rejection from a level of Resistance today. Since then the price has been Bearish. If we get a breakout downside, then an H1 Bearish Engulfing Candle at the breakout level might take the price down. Let us have a look at the H4 USDCAD chart.
USDCAD Price Action Analysis – 26h April 2018
See today’s first H4 candle. The next one came out as an Inside bar. If the current H4 candle comes down and makes a breakout at the level of 1.28190, then an H1 Bearish Engulfing Candle right at the breakout level would attract the sellers to go short on the pair later today. Let us have a look at the summary of the trade…
- Entry- H1 Bearish Engulfing Candle at 1.28190
- Stop loss- Above 1.28700
- Take profit- 1.27400
- 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 USD has a high impact news event today at GMT 13.30. I assume the H1 Bearish candle would be produced at GMT 14.00. That would be the last H1 candle of the H4 candle one that comes after the current H4 candle. If the signal comes at least 2 hours earlier than the News event hour, then we are fine to take the entry too. However, if it comes just before the news hour ( 1 hour or less), then we might as well skip taking the entry.
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