USDCAD has seen Higher Highs ( HH ) and Higher Lows ( HL ) being made on the Weekly and Daily timeframes for a good while now with 1 or 2 Lower Highs / Lower Low fake outs to pull sellers in, however this pair remains bullish. An Inverse Head & Shoulder pattern can be seen on the Daily timeframe which was formed aggressively on the 1st of March. This broke a descending channel creating a HL followed by a HH, with that being said, a HL should be formed to continue our leg to the upside. I have a Minor support on the daily in purple, using the Fibonacci Tool, this sits on a 38.2% retracement zone which will likely be my entry, with a tight stop loss of 30-40 pips. I will be looking for more confirmation with a bullish candle stick pattern at these zones. However this pair can retrace further to the Monthly Key shown which would lay on another great Fibonacci retracement zone. A retracement to the downside by 60-80 pips creating a HL would be favoured for you to then go long on this pair. The DXY looks to retrace before breaching 98.00 regions so this trade looks highly probable as well as the correlation between DXY and Gold, as Gold looks to retrace to the upside before seeing long term downside targets of 1250.00/1260.00 regions.
REMEMBER : Risk management is key for all trades & Have a profitable trading week everyone !
Instagram: keownarcher
REMEMBER : Risk management is key for all trades & Have a profitable trading week everyone !
Instagram: keownarcher