USDCAD Price Action Analysis – 2nd May 2018
USDCAD has been on a consolidation on the Daily chart after being Bullish. Today’s H4 chart suggests that the last H4 candle made a breakout at an important level of Support. If the pair produces a good corrective H4 candle and an H1 Bearish Engulfing Candle later, then selling the pair would get us some green pips.
Have a look at today’s 2nd H4 candle. It was a strong Bearish candle. That made a breakout at the level of 1.28390. The current candle already had a rejection from the breakout level. However, it is too early to take the entry. We have to wait for the current H4 candle to be finished. If the pair produces an H1 Bearish Engulfing Candle after the correction, then the price would reach 1.27875 Let us have a look at the summary of the trade…
- Sell Limit Order: 1.28390
- Stop Loss: 1.28550
- Take Profit: 1.27875
- 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 19.00 “FOMC statement”. I have noticed on a number of occasions USDCAD making a good technical move on the day of “FOMC statement”. The pair looks good today as well to make a technical move. I assume the signal would come around GMT 10.00 to GMT 14.00. If it comes later than this, then the pair would not have enough time to hit the target. Another thing if it hits the target before “FOMC statement” it is fine. If not, then close the trade whatever profit you get.
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