USDCAD is carving a bearish engulfing week within the consolidation pattern I discussed earlier this month.
Although not there yet, the coming USDCAD breakout promises to be worth the wait.
Get all the details and see exactly how I’m trading it in today’s video.
On March 2nd, I mentioned a USDCAD opportunity on the horizon.
The opportunity would materialize on a daily close above 1.295 or below 1.255. This is the consolidation range USDCAD has traded in since mid-2021.
That lower level is now closer to 1.257, given the ascending trend line support.
While USDCAD hasn’t set up for us just yet, it is carving a potential bearish engulfing week.
However, engulfing patterns are far less effective in choppy conditions, and the recent USDCAD price action qualifies.
Still, the pattern above could introduce some weakness next week. If so, and we get a daily close below the 1.257 area, I will enter a short for a move to 1.245 and potentially 1.23.
There’s also the chance we get a move above 1.295 in the coming weeks. In which case, I’ll entertain a long position for a move up to 1.339.
It’s all about playing the breakout, as I don’t want to get “chopped up” in this sideways action.
I don’t mind waiting weeks for a breakout as I know the several hundred pips of upside or downside will be worth it.