USDCAD made a strong bearish move on the H4 chart on Friday. The daily candle engulfed day before yesterday’s candle too. Thus, we are eying on the pair to look for going short. The price has been on consolidation on the H4 chart. A level of resistance has been held by the candles and it has already produced an H4 bearish reversal candle. The price may have more consolidation. If it produces an H4 bearish engulfing candle followed by an H1 breakout at Friday’s lowest low, then selling the pair would get us some green pips. Let us have a look at the H4 USDCAD chart...

The level of 1.31750 has been working as the level of resistance here. If the level produces an H4 bearish engulfing candle and then makes an H1 breakout at the level of 1.31565, the price would go towards the level of 1.31000 without having that many pauses. Let us have a look at the summary of the trade...

• Sell Stop order: 1.31843
• Stop Loss: 1.31843
• Take Profit: 1.31172

We are assuming that the current candle may test the resistance level and the H4 candle after that come out as an H4 bearish engulfing candle. However, if one of the H1 candles within the current H4 candle makes the breakout, then we shall wait for a pullback to take the entry. The reason behind that is the bullish reversal candle is not an H4 bearish engulfing candle that we look for. It has a long lower shadow. This trade idea was generated by our powerful Elite Swing Trader System.

The price had a rejection from the level of 0.68300 yesterday. The level of 0.68070 is a level where the price had a bounce. If an H4 bullish engulfing candle is produced at the level of 0.68070 followed by an H1 breakout at the level of 0.68300, then buying the pair may get us some green pips. Let us have a look at the summary of the trade...

• Buy Stop Order: 0.68387
• Stop Loss: 0.68039
• Take Profit: 0.68711

Tip of the Day: The USD has several high impact news events today. Those news events are going to take place at GMT 13.30. It would be best if the buying signal comes after those news events. If the signal comes before those news events, we may keep skipping the entry. Today’s news events may produce long spikes on the intraday charts to sweep off stop losses. 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.