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Daily Price Action Setup USD/CAD

Posted on Dec 18th, 2014

by colibritrader

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Dear Daily Price Action Setup Traders

The trading idea from last time didn’t come out to be a great daily price action setup. After the FOMC announcement, GBP/USD went down to 1.5550 before sellers started taking profits and reversing the price.

I believe that this support level might hold for longer than expected and might even lead to a correction, as I wrote earlier. Enough for this pair.

Let’s turn our attention to another currency pair that is in an extreme bullish mode. USD/CAD has been showing a great bullish momentum supported by the oil drop. We have seen some slowing down of the uptrend in the last few sessions, but I believe this currency pair has more to go. The last two sessions registered two bullish rejections. The daily candle that formed today is an inside bar. So, from a daily price action setup point of view, it looks like we could experience more fresh buyers pushing the price up . The only obstacle that might hinder price to act in the familiar bullish way would be the strong monthly resistance at 1.1700. Therefore, a long position would be with a greater degree of risk. So, trading this daily price action setup might be for the more aggressive trader.

A good entry for a long position would be the level of 1.1580 with a stop loss placed just under 1.1500. The first price target for this position would be 1.1680 and then 1.1875.

Happy Trading,

Colibri Trader

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