Daily Price Action
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Price Action Setups: Looking to USDCAD and AUDCAD

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A lot of setups to cover today so I’m going to jump straight into it…

As the title suggests, my two favorite setups right now are USDCAD and AUDCAD. I want to first start with USDCAD because it’s currently producing a trad-able setup whereas AUDCAD needs a little more time.

The pair recently came off major trend line support at 1.063 and continues to look constructive so long as we’re trading above 1.069.

The pair also recently broke out of a 4 hour wedge that has been forming since July 16th. The market appears to be in the process of forming a bullish pin bar off of this level which is now acting as support.

usdcad 4 hour forex chart

There is one downside to the USDCAD setup, however. Resistance in the form of a daily trend line from March looms just above current levels.

Despite this caveat I still like this pair to the upside. The fact that it has been “hugging” trend line resistance July 16th also supports the idea that a break to the upside may be in the works.

usdcad forex daily chart

Now for my second favorite setup in AUDCAD. As you can see from the chart, the pair is currently trading right into the intersection of trend line support and trend line resistance.

This type of pattern is “terminal” in that it has to break one way or the other. I love this type of pattern because it can provide us with a great entry point on a retest of a broken trend line.

I would prefer to see an upside break here as this market is coming off a 900 pip rally from December of 2013 to April of 2014.

audcad daily forex chart

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