USD/CAD Trading Idea

It has been a pretty volatile Tuesday session. Sharp moves on FX, indices and crude oil came as a surprise

by: Colibri Trader

The last trading idea, which you can see HERE, has already performed very satisfactorily. The yen pair has brought a lot of eyes on it. I believe we might see a sharp sell-off in the sessions to come. So far the move is restrained, because of the proximity of a major support level (100.00). Many times we have seen sharp breakouts around such strongholds as a 100.00 support level. This might not be an exception to the case.

We have seen strong moves among all of the GBP pairs and crude oil, which fell around 4% today. I am looking at a pair that is historically linked with crude oil- USD/CAD (check out my latest USD/CAD trade HERE). I am seeing a bullish engulfing pattern on the daily time frame. This bodes for more buyers to rush in and support the price pushing it higher. The level of 1.2960 looks like a very good entry point for a long trade. If in a long trade already, 1.2830 is the level where your stops should be. 1.31500 is a great place to take profits if price action starts hesitating. Let’s monitor this pair and try to make the most of it.

Happy Trading,

Colibri Trader

p.s.

For more information on how to read price action, check out this article on PRICE ACTION HERE.