I have had a few posts in the recent past, looking for the long side of USDCAD to formulate out of this triangle. As I mentioned in my last post, the larger time frame and pattern will eventually rule over the shorter one. Luckily, I haven't lost too much on the long side of this pair.
I'm going to look into this set up:
Pattern: 20 wk triangle
Trade:...
Any break above this level could drag USDCAD toward the next targets
Today's news (US nonfarm payrolls)
Will likely decide the fate of the looney and whether it can break out of the 1.2900/ 1.3000 range it has been stuck in
AFTER DISMAL JUNE NFP RESULT THE DOLLAR IS ON THE BACKFOOT AGAIN AND WE CAN NOW SEE RESUMPTION OF LOONIE BEARISH TREND WITH PRICE ACTION CERTAINLY SHOWING A BEARISH VIEW,. 5 PRIOR DAILY CANDLES WAS INDICATING TO ME THE BULLS ARE BECOMING EXHAUSTED WITH LONGER UPPER WICKS. EXPECTING NEW LOWS ON THIS PAIR TO KEY STRUCTURE. SELL ANY PULLBACKS IN MY OPINION.
200 EMA above is going to be targeted, and a break above that would signify a potential long-term set up
both RSI - MA show us a bullish momentum
Of course keeping in mind the influence of Oil market
Right now price is correcting (on 4h basis) within an upward correction (daily basis) in direction of the downtrend line (on weekly basis). The idea is to trade what could be a final wave up before reaching the trend line.
Watching for a proper price action on bounce area .
Please, share a LIKE to show support.
Happy trading!
Technically , beside the completion of the butterfly pattern at structure zone , the crude oil is expected to rally after the bull back and the resistance will become support level at $46.60 per barrel , this might will appreciate the loonie .
