Will The USDCAD Rally Again?
Currently the USDCAD, has broken out of a continuation price pattern the triangle wedge.
This may now give an opportunity for another long position, if the triangle holds as a support from above.
On the below charts using a top down analysis approach, using the Daily and 4 hr charts. I can see there is room to move higher to a resistance giving the trade room for a 3-1 potential risk to reward.
An ideal setup here will be to either look for a price action signal coming off the Daily chart, or a reversal signal on the 4 hr chart.
Another confluence is also the blue shaded area which is the 38.2-50% Fibonacci retracement area. If price falls back into the triangle then there will be no continuation trade.
Price finally came back to test the outer limits of the symmetrical triangle and the 50-618% fib retracement to find support.
I took a long trade after the two candle reversal and fake break of the previous lows. This can be seen on the chart posted above.
As usual if you have a question about this setup leave a comment below.
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