USDCAD has formed a 100 score significant bullish engulfing trade setup on the weekly time-frame. There are many confirmations to this trade setup including; a very strong Bollinger Band outbreak, a significant bullish engulfing, price broke clearly through the middle Bollinger Band on the daily time-frame, a very, very strong previous uptrend, RSI is over-sold, 5 previous strong bearish candles. SL set below previous lows. TP set at previous highs. 1:4.5 risk to reward ratio. I will post daily and monthly point of views in the comments below.
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Monthly POV: Bollinger bands contracted which is a sign of a reversal, it is looking like a fake break to the downside happened, now it is ready to move to the upside.
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Daily POV:
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Price is currently pulling back on the daily time-frame, allowing for an ideal low-risk entry. If price breaks support, the structure will change, and the setup will no longer be valid.
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I will be watching this pair very closely this upcoming week as I am currently in a short trade. Price is nearing resistance, If price breaks through, I will continue to hold my short trade. if price spikes up and finds support near the previous low, I will open my low risk, long term, long trade, as seen above. I will watch for a significant bullish engulfing on the 4H or daily time frame. Here is the current view of USDCAD on the daily time frame.
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I am still short on this pair as price closed previous support.