I foresee USDCAD to rise. We might expect to see a reverse Head and Shoulder pattern forming on the D1 time-frame.
A great Long ( buy ) entry would be after the second shoulder has formed. We will then expect to see a Bullish Engulfing Candle at the support, which is a great confirmation to go long.
H4 time-frame can also be used to identify a good place to enter the trade.
We have a previous trendline resistance which now acts as our trendline support, together with our horizontal support level.
When it breaks the trendline resistance, we can add more long positions and then hold until our target has been reached.
A great Long ( buy ) entry would be after the second shoulder has formed. We will then expect to see a Bullish Engulfing Candle at the support, which is a great confirmation to go long.
H4 time-frame can also be used to identify a good place to enter the trade.
We have a previous trendline resistance which now acts as our trendline support, together with our horizontal support level.
When it breaks the trendline resistance, we can add more long positions and then hold until our target has been reached.
Comment:
The second shoulder of this Head and Shoulder pattern is forming on this pair. The bulls want to start coming in.
Comment:
Second Shoulder Formed
Trade closed: target reached:
Our Target is hit