Break on through to the other side

FX_IDC:USDCAD   U.S. Dollar / Canadian Dollar
USDCAD exhibiting long resumption


We are bullish on this pair with small position sizing and tight stops set at 1.3200. 5- EMA has been holding up prices while oscillating in the bullish channel. Stochastic is showing a negative divergence so we placing tight stop losses.
Fundamentally, we are having a bullish bias on USDCAD as we feel the market is too optimistic on Canadian hikes, given the collapse in WCS since turned neutral in October.
The 2 main resistance zones to look out for is the 1st resistance from 1.3321 - 1.3343 (61.8% Fibonacci extension) and the 2nd resistance at 1.3369 – 1.3392 (78.6% Fibonacci retracement). A break of both of those levels is an extremely bullish sign. However, if we see a break of 1.3182 (22 November low) our view shifts to being aggressively short.
Please take a look at our idea and let us know what you think.

Cyclentrade Pepperstone
@Pepperstone, sounds good. I start my fib grid from beginning low of trend channel to recent high, and quantify extensions beyond, to me, I eye the 1.34 as a target area and recent low/pivot, turnaround price as stop alert
Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out