Want more price action setups? Join our Exclusive Member’s Community
USDCAD has been in consolidation mode since early February. Before that the pair enjoyed a 2,000 pip rally that lasted for seven months.
Over the past two months, the pair has given us several opportunities to buy and sell within the 400 pip range. On March 26th the pair formed an inside bar pin bar combination at support followed by a bearish pin bar from resistance on March 31st.
Before yesterday’s FOMC meeting, the pair looked as though it might break an important support level at 1.2450. The post-meeting outlook, however, looked quite different.
Following FOMC, the pair managed to rally 150 pips from the day’s low to close the day 90 pips above 1.2450. This trend line dates back to February 3rd and has held as support on six separate occasions.
Yesterday’s bullish pin bar/engulfing bar gives us the option to look for a buying opportunity on a 50% retrace. That puts the area of interest between 1.2450 and 1.2490. Key resistance comes in at 2015 highs at 1.2800, giving us 300 pips to work with.
Summary: Potential to buy yesterday’s bullish pin bar on a pullback targeting the 2015 highs at 1.2800.