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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