Dólar Americano/Dólar Canadense
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USD/CAD 4HR TF Analysis

USD/CAD 4HR TF Analysis

Trend Analysis
On the 4-hour timeframe, USD/CAD is consolidating in a range, indicating market indecision. Despite the sideways movement, the larger timeframe still reflects an uptrend. Within this consolidation, the price has formed a bull flag pattern, a potential indication of bullish continuation. Currently, the price is near the minor key support level at 1.43700, which has been tested multiple times. Below this, another key level is at 1.43400, near a liquidity zone. If the price reclaims and breaks above these levels, it could trigger further upside momentum.

Price Action Expectation:
Wait for the price to break below the 1st minor key support at 1.43700.
Observe liquidity formation around the 2nd minor key support at 1.43400.
Look for a break above 1.43700, which could confirm a continuation of the uptrend.

Trade Setup:

Trade Type: Buy Stop
Entry: 1.43840 (upon breakout confirmation above 1st minor key support)
Stop Loss: 1.43460 (below the liquidity zone to avoid false breakouts)
Take Profit: 1.44620 (targeting the next significant resistance level)
This setup leverages the confluence of technical patterns, key levels, and market behavior to provide an informed trading decision.

Fundamental Outlook:
USD News (Unemployment Claims): Expected later today, with the previous forecast at 217K and the latest forecast at 221K. This data release could introduce volatility in USD pairs.
CAD News (Retail Sales m/m): Scheduled for later today, with the previous forecast at 0.6% and the latest forecast revised to 0.2%. This weaker-than-expected data may exert downward pressure on the CAD, further supporting a bullish outlook for USD/CAD.

Risk Management:
Maintain a risk-to-reward ratio of at least 1:2 to maximize potential returns.
Position size should align with your account equity and risk tolerance.
Be cautious around liquidity zones to avoid premature stop-outs.

Trading involves significant risks and may not be suitable for all investors. Ensure your strategies align with your financial goals and risk tolerance.

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