USDCAD Double Inside Day as Price Stalls @ Resistance –

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usdcad h4

Looking at the USDCAD which has got my attention here as it hits a potential turning point here. Last time the market failed at this level we seen a 500 pip drop on the daily chart.

The market tested this level last session, but higher prices were rejected again for a second time at this level. If we get a repeated response there could be a decent move off this level.

My Price Action Battle Station algorithm send me a notification on my iPhone about a double inside candle setup on the 4 hour chart – which I seen when I got up this morning. So I checked out the setup, and there is potential for a breakout here.

I don’t normally worry about inside candles on the 4 hour – but double inside candles (marked in orange) seem to have a much better success rate. The main factor here is the major resistance level acting as a potential turning point. There isn’t anything to work with on the daily chart – but a downside breakout could be triggered as price moves below the double inside candle setup on the H4 chart.

Because this pair generally moves the most in the New York session, it would probably be best to avoid taking any breakout style trades until the US session does open to avoid getting caught in early breakout traps.

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The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.

1 Comment

  1. Joseph Romanos on

    I think that your expectation is highly probable , that’s why I shorted the pair yesterday @1.3434 I closed have of the position today and kept the remaining open. Would advise about a potential target and a possibility to add and on which level. Thanks