USDCAD Price Action Analysis – 27th July 2018
USDCAD has been Bearish on the H4 chart. The price has kept making the lower low. Yesterday’s Daily candle came out as an Inside bar as well. Thus, if the price makes a breakout towards the South today, we will get an opportunity to go short on the pair and make some green pips. Let us have a look at the H4 USDCAD chart.
As the chart shows that the pair produced some big H4 Bearish candles. Yesterday’s H4 candles look like corrective candles. Those H4 candles made the Daily candle as an Inside bar. Today’s first two H4 candles came out as Bearish candles. However, we would have to wait for a good-looking H4 Bearish Engulfing candle and an H1 breakout at the level of 1.30205 to take the short entry. The level of 1.30780 might be the level of Resistance as far as the H4 chart is concerned. This means let’s wait until the chart produces an H4 Bearish Engulfing Candle at the level of 1.30780 first. Let us have a look at the summary of the trade…
- Entry- H1 breakout at 1.30205
- Stop loss- Above 1.30780
- Take profit- 1.29275
- 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
Yesterday we recommended that EURCAD would be Bearish. The price actually went down all the way to hit our target. However, the price did not trend from the level that we had recommended though. Now the question would be whether we should take those entries just after the breakout? The answer is “No”. It is best to take an entry if the price trends right from the strong level of Support/Resistance.
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