Good morning traders, today we will analyze USD/CAD in depth since last week there was an interesting breakout that is worth studying.
This analysis consists of 3 timeframes. The Weekly and Daily are merely context analysis, and the 4h timeframe will be in which we look for a potential entry into the market.
🔸Let's look at the Weekly Chart:
In this timeframe, we see that the price is bouncing off a large support zone, which was the starting point of the two previous bullish impulses. This is the first bullish sign. There is a possibility that in this situation we will see the same behavior.
🔸In the Daily Chart (published chart), we detected a break in the bearish channel that had been in force for more than a year, which is a great bullish sign. If we add this situation to the rebound in the support zone, it gives us a scenario of high bullish probability. The target that we consider probable is the intermediate resistance zone at approximately 1.3400.
🔸And finally, the 4H chart:
Here what we are going to propose is the scenario to wait to take a bullish trade. Under our trading style, the best thing to wait would be a corrective move that allows us to take a position with a high R/R, for example a bullish flag. If this happens, we will operate the breakout of the corrective structure and the stop loss will go behind it.