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I’m keeping today’s commentary light as we approach the beginning of this week’s intense schedule of news events. The first setup we’re going to look at is USDCAD, which is really more of a potential setup than a confirmed setup. But don’t let that fool you, this pair could produce an explosive move in either direction given the right catalyst.
Today’s price action tested wedge resistance once again, however it’s too close to call this an actual break of the wedge pattern. If you remember, last week’s price action produced a false break on the 4 hour chart. This left us needing a daily close outside of support or resistance in order to consider an entry.
As such, I’d like to see what tomorrow brings in hopes that the market can make a daily close above the 1.2570 handle. This would give me confidence that the market has indeed broken out to the upside of this pattern and is likely to see higher prices in the days and weeks ahead.
Summary: Wait for a daily close above 1.2570 and then look to enter long on a retest as new support. Key resistance and measured objective comes in at 1.3000.