25.06.202113:01 Forex Analysis & Reviews: Trading idea for USD/CAD

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

USD / CAD lost around 25,000 pips over the past year, and recently has falsely broken through the 2017 low - 1.20500.

But using Stop Hunting strategy, traders can recover this loss and bring the quote back to 1.47.

To do this, traders can rely on the buying pressure seen in the H4 chart, which appeared after the false breakdown of 1.20500.

Clearly, there is a classic three-wave pattern (ABC) in USD/CAD, where wave A represents the buying pressure observed last week. Traders can base on this when setting up new short positions in the market, the aim of which is to trigger a 50% pullback from 1.22700-1.23300. In this, stop loss should be placed at 1.21000-1.21500, while the targets are 1.25000, 1.27500 and 1.47000.

To hold positions at 1.47000, use accounts without swaps.

This method follows the framework of Price Action and Stop Hunting strategies,

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.