USDCAD - BUY - 7th June 2022




USDCAD - BUY - 7th June 2022 (Closed)


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

 

Trade Setup
BUY - Market Execution

Entry
1.2595

Take Profit
1.2685

Stop Loss
1.2535