Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
On August 28, I wrote about two significant channels on USDCAD.
The first was a larger descending channel that extends from the first half of 2016.
The smaller ascending one began at the end of 2017.
Here they are again in case you missed it:
As appealing as those two patterns are, neither offered an immediate opportunity.
However, the USDCAD is on the move today after several weeks of consolidation.
But buyers still have work to do.
I want to see a daily close above 1.3340 before calling this a confirmed breakout.
Remember that I use New York close charts so that each 24-hour session opens and closes at 5 pm EST.
That gives me five equal 24-hour sessions each week.
Until that occurs, today’s breakout is speculative at best.
A close above 1.3340 followed by a retest of the area as new support could offer an opportunity to get long.
Alternatively, a daily close back below 1.3340 would keep sellers in control.
As for resistance above 1.3340, the descending channel I pointed out above will likely come into play around 1.3450/70.
Keep in mind that 1.3340 would need to hold as new support following a close above it.
A failure to do that would be suggestive of a bull trap.
But as long as this short-term uptrend is intact, I think it’s wise to watch for longs with a target of descending channel resistance at 1.3450/70.
[thrive_custom_box title=”” style=”dark” type=”color” color=”#fef5c4″ border=”fadf98″]
Want to see how we’re trading USDCAD?
Click Here to join and save 40% – Ends September 30!
[/thrive_custom_box]
