- The graph shows the inverse formation of the head and arms
- The price is above the 100-period moving average
Recommendation:
Trade: Entry into a long position in the USDCAD currency pair at market price
- Take Profit 1: 1,2860
- Stop loss : 1,2560
Justification:
Justification: When looking at the USDCAD currency pair on the H4 interval, it is possible to observe an inverse pattern of the head and arms, which often announces an upward movement. The price rebounded several times from the key support area near the 1.2600 level and began to move upwards. According to the methodology, a shift to the level of 1.2735 can now be expected, which represents the neckline of the mentioned formation. If buyers manage to break through the mentioned level, the upward movement could be accelerated. We recommend entering a long position in the USDCAD currency pair at a market price target of 1.2860. The stop loss should be placed under the right arm of the formation (1.2560).
Source: xStation5
Trade closed: stop reached:
Stop loss : 1,2560