Daily Price Action

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.

USDCAD daily forex chart

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Leave a Comment:

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.

    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.

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