USD/CAD is a Breakout Occurring?
Yesterday I wrote how USD/CAD broke above its nearly 3-month resistance channel line on Friday and the possibility of a new trend taking place. This morning USD/CAD actually traded in a narrow horizontal channel, stuck below the 1.3600 psychological resistance line and around 1.3566. That changed this afternoon, when a breakout above that 1.3600 resistance line occurred.
It is now trading above 1.3600, and the previous 3-month resistance upwards channel trend that I mentioned yesterday, seems to be over. This could be the formation of a more bullish up-trend. I think some patience is required over the next two days (Christmas holiday tomorrow) to see if a new support line forms in an up-trend. The market today was testing whether the previous channel would hold, and it appears that it did not, so now we see what's next for the pair!
I welcome any feedback or thoughts. This is a learning process for me and I hope to improve as time goes on!
It is now trading above 1.3600, and the previous 3-month resistance upwards channel trend that I mentioned yesterday, seems to be over. This could be the formation of a more bullish up-trend. I think some patience is required over the next two days (Christmas holiday tomorrow) to see if a new support line forms in an up-trend. The market today was testing whether the previous channel would hold, and it appears that it did not, so now we see what's next for the pair!
I welcome any feedback or thoughts. This is a learning process for me and I hope to improve as time goes on!
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