USDCAD Testing Its Resistance, Potential Breakout
Buy above 1.2672. Stop loss at 1.2587. Take profit at 1.2831.
Reason for trading strategy:
USDCAD is testing its resistance at 1.2672 (23.6% Fibonacci retracement, horizontal overlap resistance, descending channel). If price breaks past this level, it would have made a bullish exit from its descending channel and we would expect prices to rise further to its next resistance at 1.2831 (100% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap resistance).
We have also identified another support at 1.2587 (horizontal swing low support).
Stochastic (89, 5, 3) bounced nicely from its support at 1.5% where it has a lot of upside potential. We have also identified a bullish divergence with price which contributes to our bullish bias.
Reason for trading strategy:
USDCAD is testing its resistance at 1.2672 (23.6% Fibonacci retracement, horizontal overlap resistance, descending channel). If price breaks past this level, it would have made a bullish exit from its descending channel and we would expect prices to rise further to its next resistance at 1.2831 (100% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap resistance).
We have also identified another support at 1.2587 (horizontal swing low support).
Stochastic (89, 5, 3) bounced nicely from its support at 1.5% where it has a lot of upside potential. We have also identified a bullish divergence with price which contributes to our bullish bias.