USDCAD Ascending Triangle with Bullish Targets
Updated
USD is in a bullish trend, creating an ascending triangle pattern. Wait for the pattern to confirm itself once price moves past the prior high.
If price confirms the triangle pattern, the first target is the prior swing low. Which is now a resistance point and where you may take some profit.
Then if price moves past the first target, next is the ascending triangle target. At that point I would exit my position and reassess the chart for the next trade.
If price confirms the triangle pattern, the first target is the prior swing low. Which is now a resistance point and where you may take some profit.
Then if price moves past the first target, next is the ascending triangle target. At that point I would exit my position and reassess the chart for the next trade.
Note
Price has moved above the prior high, which served as the top of our ascending triangle.Price is hitting resistance at the 200 hour moving average.
A lot of data about the Canadian and US governments is coming out tomorrow. How you should view this technically should be based on a strategy that you can competently trade.
The data released will cause volatility: That means if you don't understand how the fundamentals work, or how to technically trade the price action, then do not trade.
I decided to technically trade this movement. I will be watching price action as the data comes out.
I have two assumptions:
1, if data is bullish for USD, we will go above the 200MA and very likely move onto the second target.
2, if data is bullish CAD, we will stay below the 200MA and reassess our trading position. Maybe look for shorting opportunities.
I think the data coming out will make USD bullish.
Note
UPDATE:Price has hit the first target and is currently moving sideways while above the 200 hour moving average.
What I am looking for in a bullish setup to reach target 2:
1. Moving average supporting the price pull back.
2. Good news from government reports.
3. Price moves above the new swing high that was made after reaching target 1.
Note
All three of the points that I was looking for in a bullish setup happened.Price has extended past the second target, and completing this trade.
Price has been in a downtrend overall, in a 4H time frame we see lower lows and higher highs. The prior high was at a price of 1.337 and I do not think in the current trend that we will go above that.
With that in mind it's best to reassess the chart to see if the trend will reverse or begin pulling back to the downside.
Thank you for reading.
Trade closed: target reached
Joe Baus, bausbenchmarks.com
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