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27.01.202113:50 Forex Analysis & Reviews: Trading idea for the USD/CAD pair

Exchange Rates 27.01.2021 analysis

USD / CAD is starting to trade downwards in the market. In fact, it is now fluctuating at a rather wide range, during which buyers are constantly carried away, and sellers' risks have remained intact for almost two weeks.

At the same time, today, the US Fed is scheduled to hold a meeting, and the outcome of it could set off an increase in volatility. Against this background, it would be best to consider a bullish idea for USD / CAD, the strategy for which can be seen below:

Exchange Rates 27.01.2021 analysis

At the time of writing, USD/CAD has formed a three-wave pattern (ABC), where wave "A" is the movement observed on January 21-26. Taking this into account, it is best to open long positions after a pullback. In particular, within the area shaded at the chart above.

Of course, traders still need to carefully assess the situation before placing any position. Trading is very precarious, but is profitable as long as the correct strategy is used.

The trading idea above follows the Price Action and Stop Hunting methods.

Good luck!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Andrey Shevchenko,
Analytical expert
InstaForex Group © 2007-2021
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