Following USDCAD, we can see this major consolidation zone which has been around since Covid-19's Lock-down began. So, lets break this down further, this pair is in a range between my descending Trendline and this major support at 1.38701. As price rallied downwards last week, we came to our support zone and we did not break this support zone. Therefore, we initially look for buys at this support. Price casually bounced off of this support zone and created a nice bullish engulfing candlestick pattern (the yellow box). A classic pattern to come across. So, we will now place our entry at the top of the large bullish candle and our Stop Loss will go at the bottom of the same candle. We only use a 1:3 Risk to Reward Ratio for this trade, roughly a 1:2.5 which is still a healthy trade.
Entry: 1.29347
SL: 1.38445
TP: 1.41500
Entry: 1.29347
SL: 1.38445
TP: 1.41500