Upon the last weekly closing we have finally witnessed the bullish flag breakout on USDCAD. Long term forecast indicates that we can be expecting the target range marked on the chart. Now why is that? I have the following evidence in this regard:
1- We might be heading to mark monthly triple tops by hitting the area between 1.4300-1.4700
2- There is no significant resistance except the flag top between 1.3870-1.3974, which is our first expected target as well. Breaking here we can expect our final target zone as explained in point 1.
But now the question arises about the entry, we cannot enter with weekly candle right? not good enough RR. For that we shall consult our four hour timeframe.
I want you to see this picture. Line chart because we need closing prices for entry!
We got a falling wedge on our H4 timeframe and with the fridays closing price we have already broken higher than the minor two day consolidation zone which suggests that we can enter directly. However, to further fine tune our entry we can see lower timeframes.
Our stop out point shall be the Friday low i.e. at 1.3669 but I personally think that 1.3685 should be fine at this point. However, it is purely subjective considering what timeframe you choose enter from.
That is all folks, please ensure proper risk management and take extra care of your capital while trading! Best of luck and happy trading!
1- We might be heading to mark monthly triple tops by hitting the area between 1.4300-1.4700
2- There is no significant resistance except the flag top between 1.3870-1.3974, which is our first expected target as well. Breaking here we can expect our final target zone as explained in point 1.
But now the question arises about the entry, we cannot enter with weekly candle right? not good enough RR. For that we shall consult our four hour timeframe.
We got a falling wedge on our H4 timeframe and with the fridays closing price we have already broken higher than the minor two day consolidation zone which suggests that we can enter directly. However, to further fine tune our entry we can see lower timeframes.
Our stop out point shall be the Friday low i.e. at 1.3669 but I personally think that 1.3685 should be fine at this point. However, it is purely subjective considering what timeframe you choose enter from.
That is all folks, please ensure proper risk management and take extra care of your capital while trading! Best of luck and happy trading!