It is Sunday and I am doing my usual Sunday trading analysis.
After going through a few currency pairs I realised that USDCAD is showing signs of bullishness.
But before that what happened with XAUUSD. I wrote about it last week after a pin bar formation. So far, I cannot see more bearish confirmations.
Alas, there seems to be a bullish engulfing pattern on the daily chart, which does not bode well for the bears. This means that we might see more bulls joining us.
If not and if price foes below 1540, then this would be a clear sign that the downtrend will continue.
USDCAD Trading Analysis
Today, I am looking at the USDCAD currency pair.
It looks like there might be more bullish activity here. There is a major demand zone that has been re-tested.
There was a bullish engulfing pattern on the daily chart a few trading sessions ago.
This coincided with the demand zone.
Currently, the price is trading slightly higher and there was an inside bar that formed on the daily chart on Friday.
I will see how price re-opens on the next trading session and will decide if I will go long or not.
For now, it looks like the price might go higher towards the 1.3300 area.
I will not go long if there is a bearish candlestick pattern that forms on the daily char and rejects the bullish setup.
Have you checked my other article on Moving Averages?