Following an uptrend, which lasted for several months, the pair began to decrease back a few sessions ago by crossing a support level at 1.0002 and clearly closing below it. The double bottom (two daily candle having the same bottom) appeared with the candles of the two last sessions describes the end of the decreasing trend.
Currently, there is a basis for a new uptrend to begin, creating the opportunity for a nice and profitable “Long” transaction. This opportunity requires a confirmation by the identification of an increasing configuration on 1H graph.
The required configuration should appear once the 1H resistance of 0.9835 will be crossed upward. After the identification, an adapted order can be entered.
– “Limit” order on “Long” position 10 pips above the mentioned resistance, meaning 0.9845.
– “Stop Loss” order on the last dip occurred, meaning 0.9794
– 1st degree to “Take Profit” is on the following resistance: 0.9870
After the pair reached the parity level (1USD = 1 CAD) as a support, it reversed and started to increase back about a week ago. On a larger view, it seems that the pair is navigating for several months already and doesn’t look like it has any specific trend.
Currently, the pair is making its way to the higher level of the navigation: the resistance of 1.0341.
Once the resistance will be reached, there are two possible outcomes:
1. The resistance is crossed upward and is closing above it. In this case, it should be better waiting for a technical correction, looking for an increasing configuration on 1H graph, and enter your order accordingly.
2. If the pair is stopped on the resistance, a “parking” for about a session and a half should confirm the fact the pair is based on the level and will not cross it. A reversing trend could be the result of such a stop; creating an opportunity to go “Short” after the identification of a decreasing configuration on 1H graph.
Have a profitable day!
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