USD/CAD Daily Analysis - Pullback Before Major Bull Run!?USD/CAD bounced nicely off of 1.36300 for a nice 200+ pip run to the upside. We ended last week with a Daily Pin Bar Bear candle, and DXY (Dollar Index) was in a trading range. Where does that leave us for this week?
First, we're in a bull channel which means the probability of profit is in the bull's favor. I am looking for a long entry and have no interest in shorting the Daily chart at this time. Since our last candle was a bear pin bar, that may be an indication that we're entering a minor pullback and should wait until it concludes. The RSI is just above 50.00 and curling down, you may want another test at the 45.00 level before going up.
We also have established a minor trend line within the current bull channel with this last bounce. With a good bull signal bar in the 1.37000 area, I would consider entering a long with a stop loss just below the channel bottom and a take profit at the next Weekly previous high of 1.40000.
Key Points
1. Bull Channel, Always in Long
2. Last Candle was a bear Pin Bar
3. DXY in Trading Range
4. Look for at least a small pullback before longing.
5. RSI is just above 50.00, wait for a pullback
Until we see a minor pullback and bounce, I would wait to long and definitely not short unless it's on the lower timeframes (5m, 15m, 1hr).
You are solely responsible for your trades, trade at your own risk!
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