Good morning team,
This morning we are placing a position in the direction of the US Dollar due to the DXY setting up a bullish inverse head and shoulders formation. This indicates a corrective rally should unfold over the next couple of days. The AUDUSD and EURUSD also look favourable for a trade in the direction of the US Dollar.
DXY 4 Hour Chart
USDCAD 4 Hour Chart
There is a bullish divergence on the RSI 4 hour chart, the USDCAD has reclaimed the trend line support and we will look to target the negative trend line resistance initially.
Trade Setup: BUY market execution, current price 1.2595, stop loss 1.2535 and take profit target 1.2685.
Stop loss: 60 pips
Take profit: 90 pips