Buy USDCAD (Posted 22/07/2019) 13:50
Buy USDCAD at price 1.3066 with a stop loss placed at 1.2768 and a TP placed at 1.4570. Due to all the commotion caused by news, we have decided to look at long term positions. USDCAD provides a nice buying opportunity. Long term wise we identified Bullish flag-like structure. This normally calls for continuation as the price broke our descending trend line and is now retesting it. We foresee a rally unfolding on the USDCAD chart. It might be a good idea to wait for the weekly candlestick to close, say above the body of the previous candlestick to confirm a Bullish reversal. Also, a similar structure on USDJPY is unfolding.
In addition to the above, the price may drop further. But it is important to note that the moment is dying down. By observing the steepness of the fall in price or the aggressiveness of the drop. It is quiet evident that the selling momentum may be dying out. It is only a matter of awaiting a higher highs to form, say on H4. This will thus indicate a beginning of a new trend. A possible rally. More especially if the previous resistance becomes a support. Also, our weekly Stochastics is oversold, this indicates a possible exhaustion of the sellers. On a monthly chart the market is on our ascending trend line. This ties together nicely with the previously posted data with regards to USDCAD