USDCAD is approaching a great area of demand to the downside around the 1.37000 price level. I will be watching this closely for a strong daily bearish close before waiting for a candle signal to confirm my entry.
Entered this trade on a pin bar / stop hunt that present itself yesterday morning. Entered on this pin bar and waited for news to hit. It was positive as suspected, my take profit was back down at previous structure and did actually push through this.
This pair is bearish for me looking at the weekly chart, strong bearish candle inside an ascending channel. Therefore bearish short term. A break of the lows inside the yellow box could run it down to 1.25500 support, but a pullback is needed first! Just be wary of double bottoms and tops being formed which are also apparent on the daily timeframe too.
this analysis require little explanation: we are approaching a level that has been rejected other times in the recent past. The Bat formation completes right at that level, boosting our confidence in this trade opportunity.
If you have questions, please do underneath.
Otherwise, see you in the next chart!