Inverted Hammer at Resistance on USDCAD

13 May 2014

USDCAD has been trending down of late, but has recently pulled back to a resistance level where it is forming an inverted hammer. I'll take this as a sign the downtrend is ready to resume, and so am entering at 0904 with my stop at 0966. My target profit is at 0703. I'm risking 62 pips to gain 201, so the reward/risk on this trade is about 3.24.

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