Short-term BUY on USDCAD
Updated
Previously drawn potential trend line has now been touched for a third time, however has also been interacting with support/resistance zone fairly often. Price looks to have bounced off of the trend line at the moment and beginning to head upwards. If price does continue to move upwards, I have identified two potential outcomes to bear in mind for take profit levels:
- Price accepts the trend line and moves upwards to around 1.3075 which I have identified as an area of resistance, although has previously been broken.
- Price accepts trend line, moves upwards and breaks out of the resistance zone, turning it into support and allowing price to continue to move upwards (1.324 is an area I am comfortable with using as take profit)
- Price accepts the trend line and moves upwards to around 1.3075 which I have identified as an area of resistance, although has previously been broken.
- Price accepts trend line, moves upwards and breaks out of the resistance zone, turning it into support and allowing price to continue to move upwards (1.324 is an area I am comfortable with using as take profit)
Note
Currently seeing a breakout below the trend line on the 4H chart, and currently coming up to retest from the other side. Will be interesting to see which way it decides to move, currently inclined to say the breakout will be confirmed due to weak NFP data last weak weakening USD.Note
Price has now reached the first area of significant resistance and is interacting with it. If 1.3075 was used as a take profit level this would have captured around 60-80 pips profit depending on entry.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.