FX.co ★ Trading tips for USD/CAD

USD/CAD closed higher after Philadelphia Fed President Patrick Harker said the central bank will raise rates above 4%. Most likely, it will remain at this level, or increase further if needed. Fed member Lisa Cook said the same thing, stressing that rates need to continue to rise to control inflation. The current rate is between 3% and 3.25%.

This scenario creates opportunities to buy the pair.

Since a three-wave pattern (ABC) developed, where wave "A" represents the buying pressure from yesterday, traders can enter the market by taking long positions to the 61.8% and 50% retracement level. Stop loss could be set at 1.36500, then exit the market on the breakdown of 1.38.

This trading idea is based on the "Price Action" and "Stop Hunting" methods.

Good luck and have a nice day! Don't forget to control the risks.