USD/CAD

Positioned for upside momentum


In recent weeks, we indentified USDCAD as consolidating in a large Triangle formation. We noted that resistance was overcome in the beginning of June, followed by a brief rally and retracement back to trend line resistance-turned-support. Price action has since traded lower along triangle resistance-turned-support.


We saw the end of last week produce a Morning Doji Star at the fulcrum of the Triangle formation, suggesting a bullish reversal is forthcoming. We will look to go long targeting recent wick highs above 1.0230.
 
USD/CAD Strategy
 
1. Long USDCAD in the 1.0025 – 1.0050 area.


2. Set stop-loss at 0.9961 below recent wick lows.

3. Set target at 1.0233 above recent wick highs, risking 89 pips to gain 183.