I've been waiting on posting this USDCAD update until we started to get much closer to one of the key technical levels that could be used as a trade opportunity. USDCAD , as was expected has finally broken past 1.34 an create a new yearly high. We are currently trading just under 1.35. If you've seen my other USDCAD analysis you know that we were trading well within a strong pattern called an Ascending . These patterns require a strong initial trend before forming and typically are a sign of a reversal relative to the time frame they appear on. In this case that means the daily/weekly chart.
I'm looking for price to reach the upper resistance on the ascending shown on the chart above and looking to sell around 1.36-1.3650.
Please don't feel like you missed out of you don't get into the trade on the upper resistance...there is always a trade opportunity when it confirms the break of the lower support as well. Patience is key, let price get to a desired entry or no trade. I am also not saying that this is going to be the absolute high for USDCAD ...remember the is still intact until the lower support is confirmed to be broken.
As a bonus, I don't trade OIL but I do hear quite a bit about the correlation between USDCAD and OIL being inverse....look at the daily/weekly on OIL ...Descending Structure.
Please do your own analysis before entering a trade. If you enjoy these posts, feel free to comment, follow, or "like"