USDCAD Long Setup – A Reversal on the Horizon?
Looking at the
USDCAD
4-hour chart, we’ve seen a substantial decline recently, with price action showing a sharp move down. However, a potential reversal signal is brewing as the Money Flow Index (MFI) is indicating bullish money flow while still being below the 50 mark, which often suggests an upcoming change in trend direction.
Trade Plan:
Entry Point: At the 0.75 Fibonacci retracement level around 1.34611, which may act as a strong support and springboard for the price to bounce back up.
Stop Loss Zone: Below the recent swing low at 1.34127 to protect the trade against a continuation of the downtrend.
Profit Targets: Initial target set at the recent high at 1.36061, with further potential upside if bullish momentum picks up.
The current price action has approached the marked Fibonacci level, which could offer a strong risk-to-reward ratio for a long position. Given the bullish divergence hinted by the MFI, this could be an excellent opportunity to catch the early stages of a possible bullish trend reversal.
USDCAD
4-hour chart, we’ve seen a substantial decline recently, with price action showing a sharp move down. However, a potential reversal signal is brewing as the Money Flow Index (MFI) is indicating bullish money flow while still being below the 50 mark, which often suggests an upcoming change in trend direction. Trade Plan:
Entry Point: At the 0.75 Fibonacci retracement level around 1.34611, which may act as a strong support and springboard for the price to bounce back up.
Stop Loss Zone: Below the recent swing low at 1.34127 to protect the trade against a continuation of the downtrend.
Profit Targets: Initial target set at the recent high at 1.36061, with further potential upside if bullish momentum picks up.
The current price action has approached the marked Fibonacci level, which could offer a strong risk-to-reward ratio for a long position. Given the bullish divergence hinted by the MFI, this could be an excellent opportunity to catch the early stages of a possible bullish trend reversal.