Well, today was nothing short of a fantastic day for those who traded the USDCAD break yesterday. One reason I liked this trade so much, besides the great risk to reward ratio, is that USDCAD has a tendency to become extremely volatile on breakouts.
In watching today’s price action it appeared that a lot of traders out there were favoring shorts. Once price crept above 1.077 and started taking out those stops it was off to the races.
From here I think this market stands a good chance of breaking resistance at 1.081 early next week. From there the next resistance comes in at 1.094.
Now for my favorite setup going into next week – AUDCAD. Today we saw the market break trend line resistance by 25 pips, which is exactly what we want to see. From here we can look for a pullback to former resistance (now support) for a long entry.
The next key resistance doesn’t appear to come in until the 1.025 area, giving us about 100 pips to work with.
Want Access to All of the Daily Setups?
Join the Daily Price Action Member’s Community