Dear USD/CAD Trading Signal Traders
The trading signal from last time has started to show some hesitance and I have cut down my position before the price hit the stop loss. In fact, if you are still in this trade, the stop-loss would not have been hit. There are a few factors that made me reconsider not staying in this trade for any longer. First of all, the imminent resistance level at 123.60 was not pierced. The price bounced back from it, not being able to resist the force of the sellers it met at those levels. The other worrying sign that I am seeing is a bearish engulfing candlestick pattern, which is giving green light to the sellers. Having said that, I believe that the potential for a short-term reversal is higher than for more buyers showing at these levels. I will be possibly looking for more buying opportunities around the 121.00 area.
Today’s trading signal is coming from USD/CAD. It is slowly gaining bullish momentum and I believe we might see it if not breaking through the level of 1.34600, at least going up to this major resistance area. There was a bearish rejection, which turned into a pin bar and a bullish engulfing pattern just above a minor support level. Based on those factors, I am considering going long at current levels 1.3345 with a stop loss just under 1.3240. My first target is the level of 1.3460 and looking to see how the price is going to react to these levels. If there is a breakout, the bullish potential might be very strong for this currency pair.