USD/CAD – Trading a Bullish Continuation Scenario Pt. 2

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USD/CAD - Trading a Bullish Continuation Scenario Pt. 2

The USD/CAD started the week by retreating from last week’s high near 1.1460. We looked at this dip as an opportunity for traders who believe USD/CAD is in a bullish continuation mode to buy on a dip. Let’s follow up with this trade plan.

Trading a Bullish Continuation (12/1)

We looked at a trade plan to buy at 1.1325 since there is a support cluster between 1.1290 and 1.1325. With a stop at 1.1275 and a target of 1.1450, we had a 2.5:1 reward to risk ratio.

It appears that the market is indeed buying the USD/CAD after it slid to 1.1315. It is now pushing against 1.14. We should probably move that stop-loss to lock in profit ie. at 1.1350. This is to protect us from the scenario that USD/CAD is actually forming a double top and has another downswing towards the base around 1.12.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.