USD/CAD Faces Key Resistance, Potential for Reversal

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USD/CAD is testing a key resistance level around 1.3660 on the 4-hour chart, just below the 21 EMA. After a period of decline, the currency pair is showing signs of a potential reversal if it fails to break above this resistance.

**Trading Strategy**:
- **Entry Point**: A short position may be considered if the price is rejected at the current resistance level with confirmation such as a bearish candlestick pattern.
- **Stop Loss**: A stop loss could be placed above the recent high around 1.3697.
- **Take Profit**: Potential take profit levels could be set at the recent support levels of 1.35313 and 1.34500.
- **Risk Management**: As always, maintain a risk-to-reward ratio that is suitable for your trading strategy, and ensure the trade size is appropriate for your account balance.


While the USD/CAD pair is at a crucial juncture, the current setup favors a bearish bias. Watch for rejection signs at the resistance level to enter short, with a clear stop loss to manage risk effectively.

Kommentera:

Idea is working fine, don't forget to TP your position partially.

Kommentera:

Final target almost reached, you can consider keep some small part of the position till 1.34368.

Kommentera:

Closing to the target again, you can keep some for the lower supports