Catch the Loonie Long Train

USDCAD

This pair has consistently printed inverted head and shoulders patterns on the daily trend line (3 so far). The latest has started to form and in addition printed a bullish pin bar just before the US long weekend.

Looking over the indicators for confluence on the trade idea, the Slow Stoch is printing a bullish crossover on the Weekly chart.

Possibly the only concern over this trade setup is the comparatively low volumes while this pattern has been forming, they are notably lower than the previous reversal on this trend line. With this in mind the safest way to trade this setup would be to wait for either a break of the neckline OR a further bullish candle (such as an engulfing candle) with high volume.

Trade active:

Running in big profits if the aggressive entry was taken at the trend line support.

We are now approaching the 'neckline' for this setup, a break of this will turn the picture even more bullish.

Comment:

Neckline was broken as expected and initially forecast in the trade idea.

Price is now approaching a retest of this neckline, where a rejection would signify a complete bullish overview for the pair and mean bulls will be in complete control.