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USDCAD Bullish Inside Bar in Play

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A fairly quiet day across the market yesterday produced a bullish inside bar on USDCAD. This is coming off last Friday’s bullish break of consolidation following the outstanding NFP figures.

USDCAD has been in a strong uptrend since 2012 but the more notable rally began in July of last year. While some have called this run exhaustive and ready for a pullback, it’s important that we trade what we see rather than what we want to see – and what we see is a market that doesn’t appear ready to succumb to the bears.

Yesterday’s quiet price action gave us a trade opportunity in the form of a bullish inside bar on the daily time frame. While a stop loss below the mother bar would prove unfavorable, a more aggressive and more favorable approach would be to place the stop loss below the inside bar itself.

To the upside, we have a couple levels to keep an eye on including 1.2800 and 1.3000. The 1.2800 handle is marked by the 2015 high. In fact this level represents a six-year high for the pair, while the 1.3000 key level can be seen acting as resistance between 2008 and 2009.

Summary: Potential to trade yesterday’s bullish inside bar with a target of 1.2800 and possibly 1.3000.

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2 comments
David says

I was wondering why it’s a bullish inside bar. Yes, it’s left a tail behind but it closed down on the day about 40% off the high of the day’s range. I do agree that we’re bullish overall though.

Reply
    Justin Bennett says

    “I do agree that we’re bullish overall though.”

    That, combined with the recent break of consolidation is what makes it bullish.

    Reply
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