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andreiruse
Nov 20, 2018 1:27 AM

USDCAD breaks above triangle Short

U.S. Dollar/Canadian DollarFXCM

Description

Starting the analysis with the weekly chart, we can spot a small break above the existing triangle, during the last 3 weeks. This does not invalidate the triangle altogether, and we can still expect a bearish move back inside the triangle, and potentially lower to hit the boundary. Price-wise we may be looking as low as the 1.29 key level.

Zooming into the daily timeframe, the previous analysis suggested a consolidation period (box) up to the 9th of November, which will continue with another similar box above - we can see that the price is still inside the 2nd box. Following the standard consolidation pattern, we are now waiting for a 3rd and 4th break in either direction to indicate the following trend.

On a upwards break, we can expect a minor bullish trend up to the 1.329 area, which was a previous significant high around July.

On a downwards break, we can follow two different ideas: the key levels (1.3 and 1.29), and the fib retracement levels (50% around 1.3, and the 71-78% area around 1.29).
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