USDCAD Trading Analysis

by: Colibri Trader

Dear Traders,

The trading analysis from last time did not really perform as expected. On the other side, I wrote about it in the meantime in a Twitter post and shared my thoughts that it seems like DAX is not yet ready for a re-bounce.

NB: I do highly recommend that you subscribe to me on Twitter, because I tend to sometimes give daily updates on some of my analyses. 

Today, we saw an increased bullish interest, which led to price reaching back again 13,000. The daily candle is a bullish engulfing, which might get even more interest from the bulls. For the time being, I won’t really touch DAX, since I am looking at a currency pair that exhibits even stronger bullish momentum.

USDCAD Trading Analysis

Today’s trading analysis is coming from USDCAD. It looks like the bullish move is about to continue in the following trading sessions.

The daily candlestick is an inside bar. It shows the readiness of market participants to continue the uptrend. 1.2925 is the next resistance level and possibly the first price target for all the traders that are long. The next price target is the level of 1.3000.

In the next trading session, I will be looking for a 4 hour price action confirmation. In case I decide to go long, I will be looking to minimise the potential for a loss by placing a tight stop loss. A hypothetical level for a stop loss is just under 1.2995.

Happy Trading,

Colibri Trader

p.s.

Have you checked the article I wrote about Nicholas Darvas, who turned $25,000 into over $2 Million?

In case you need to re-fresh your memory about Candlesticks, you can check out my in-depth article HERE.