FOMC meeting
Let’s consider the USD/CAD currency pair on the H4 chart. The price approached the support level at 1.24205, which is confirmed by the bearish chart pattern called “triple bottom”. The second important sign for the trend reversal is the bullish divergence of RSI-Bars oscillator and a temporary reversal of Parabolic trend indicator. A weak consolidation of Donchian Channel also points out that a possible new volatility momentum might appear ahead of today’s Federal Open Market Committee (FOMC) meeting.
Buy position can be opened above the fractal resistance at 1.25312, which is confirmed by the bearish trend line, the upper Donchian Channel boundary and Parabolic historical values. The lower boundary of the “triple bottom” price pattern at 1.24205 can be used for placing Stop loss. This level is also strengthened by other indicators. Conservative traders are recommended to wait for the resistance breakout at 49% on the oscillator chart. Thus, all the analytical tools confirm the trend. After pending order placing, Stop loss is to be moved every four hours following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point.
| Position | Buy |
| Buy stop | above 1.25312 |
| Stop loss | below 1.24205 |