USDCAD: Buy Opportunity After Pullback

The daily chart gave us the price reversal signal from 1.29500 support. The market moved upward, and this movement could be used for buying.

If you missed that reversal signal, the lower timeframe will be able to give you another opportunity. Let's look at the 4H timeframe and try to understand the possible market movements.

The price reached the resistance line SMA100. We got a reversal signals and the local swing high. It could be possible to buy based on a breakout above this swing high, but this trade will be risky. We have bearish MACD and RSI, which confirmed the price reversal. DMI is bullish and confirms the uptrend. But ADX line falls, and it tells us that buyers are not so active. I would think about buying, but only after a pullback in the daily chart using reversal signals from the 4H timeframe.

If the price breaks the local uptrend line, it will be a bearish signal in the direction of the main bearish trend based on the 4H chart. The market can move back to 1.29500 one more time, and the price action in this zone will be very important for us. If the price bounces, it will be a possible buy opportunity where stop orders must b placed below the local swing low. If the price breaks the support, it will be another trade opportunity for another trading idea. As for the current market situation, I would like to focus on buying from the support zone at 1.29500. And what about you?



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.