Free Forex Trade Signals USDCAD – 18th Oct 2019
USDCAD had a bearish day yesterday. The daily candle closed within a level of support where the price had a bounce earlier. On the H4 chart, the price has been on consolidation. A flipped resistance may be held, which is nearby. If the level is held and it produces an H4 bearish reversal candle, a breakout at yesterday’s lowest low would drive the price towards the South further. Let us have a look at the H4 USDCAD chart.
This trade idea was generated by our powerful Elite Swing Trader System.
The H4 chart shows that the price has been headed towards the South with good bearish momentum before finding support at the level of 1.31320. The price may go towards the level of 1.31480 and consolidate more. If the level of 1.31480 is held and it produces an H4 engulfing candle breaching the level of 1.31320, then the price may head towards the level of 1.30850. Let us summarize the trade…
- Entry: H4 breakout at 1.31320
- Stop Loss: Above 1.31480
- Take Profit: 1.30850
We are anticipating consolidation here. There is a difference between consolidation and correction. Price correction occurs when there is a big movement. On this chart, the bearish trend is established with four bearish similar length candles. If there were only two candles and the last one being a massive one, we would anticipate a correction instead. There are other differences between them.
- A correction’s length is larger than a consolidation’s length.
- At a consolidation, we must wait for a breakout at the highest high or lowest low.
- At a correction, we wait for an engulfing reversal candle at flipped support/resistance.
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