by: Colibri Trader
The trading analysis from last time has played out as expected so far. Price did go lower and reached the first support level/ target.
Currently, the daily candle is engulfing the previous day’s candle. At the same time, it is also showing some minor signs of rejection of the 0.7550 level.
For a more definite sign, I would like to see a daily close above this level. If not, then the trend is still bearish, at least for the short-term.
Anyways, I am not looking of trading this pair at this time. My attention is switched on the USDCAD pair.
There is an interesting daily candlestick pattern that has formed on the daily chart of USDCAD. It is an inside bar.
In this case, this means a trend continuation. Although, you will need to pay close attention to this one.
The pair is very close to a major resistance area. It might take some time to break above the 1.2900 level.
Alternatively, there might be a very quick break through this level.
A third possible scenario is to see a breakthrough and then a reversal daily candlestick pattern.
I think this might happen just after price touches the 1.3000 psychological level.
I will be looking for a confirmation pattern from the 4 hour chart. If such appears, I might enter into a long position. For now, I am patiently waiting and looking at price action.
p.s. Check out my article on Bollinger Bands
Or why not learn more about CANDLESTICKS