USDCAD was choppy on the H4 chart for a while before making an upside breakout. However, the bullish momentum did not continue. It is rather coming down after making an H4 bearish engulfing candle. Today’s price action has been bearish as well. If the price continues to go down and make a breakout at a support level, the sellers may find an opportunity to go short on the pair later today. Let us have a look at the H4 USDCAD chart. This trade idea was generated by our powerful Elite Swing Trader System.

The chart shows that after producing a massive H4 bearish engulfing candle, the price had consolidation. The level of 1.33430 is the level of resistance here. On the other hand, the level of 1.33205 is the lowest low of the wave. One of today’s H4 candles has come out as a strong bearish candle. With this bearish momentum, the price may head towards the South and make a breakout at the level of 1.33205. If the level is breached by an H4 candle, the sellers shall wait for a pullback and an H1 bearish engulfing candle right at the breakout level to go short on the pair. Let us have a look at the summary of the trade...

• Sell Stop Order: 1.33164
• Stop Loss: 1.33463
• Take Profit: 1.32743

The chart gives us a lesson that a breakout may take place but it has to be held by the breakout level as well. In this case, the resistance level should have worked as a level of support. That did not happen, but the price came back in. This has changed all the equations and the chart looks good for the sellers now. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about Price Action Society.