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03.02.202113:30 Forex Analysis & Reviews: Trading idea for USD/CAD

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Increased demand for the US dollar pulled USD / CAD out of the downward trend, but the strengthening of oil led to a correction of this impulse, leaving pretty good targets.

So, since the quotes formed a wave pattern (ABC), in which wave A is the bullish initiative observed at the end of January, long positions may be set up from 1.27700 - 1.27300, the target of which is a 50% retracement. Risks should be limited to 1.26500, and then take profit as soon as the quote breaks through 1.28800 and 129600. This transaction has a risk/profit ratio of 1.5:1.

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

The plan above follows Price Action and Stop Hunting methods.

Good luck!

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