USD/CAD Ascending Triangle Setup - Brace for Buying
|The USD/CAD was closed at 1.32736 after placing a high of 1.33137 and a low of 1.32703. Overall the movement of pair USD/CAD remained Bearish that day.
At the starting session on Friday, USD/CAD rose amid the Crude Oil selloff. Crude Oil prices at the ending day of the week remained under pressure due to increased tension in US and China disputes after the Hong Kong bill's approval by Trump. Despite the chances of OPEC extension cut, Crude Oil was dropped on Friday and weighed on a commodity-linked currency – Canadian Dollar. The decrease in Loonie helped USD/CAD to move in an upward direction
However, the Bullish trend of USD/CAD did not remain for a long time and was dragged back in the opposite direction after the release of Canadian GDP. The Gross Domestic Product of Canada showed that the economy of Canada remained calmed and at its pace during global tensions and helped increase the demand for Canadian Dollar. The closely watched Gross Domestic Product (GDP) from Canada came in flat at 0.1% on Friday at 18:30 GMT.
However, the Industrial Product Price Index (IPPI) from Canada showed growth to 0.1% against the expectations of 0.0% and supported Canadian Dollar.
The stronger than expected IPPI from Canada supported Loonie and further added in a downward trend of USD/CAD. Hence, the pair ended its day with a Bearish candle at the ending day of the week.
Technically, the USD/CAD is trading in an ascending triangle pattern which is keeping the pair supported over 1.3280. On the upper side, the 50 periods EMA is extending resistance around 1.3320 area. The bullish breakout of this level can extend buying until 1.3350.
The MACD value is holding above 0, signifying chances of further bullish trend in the USD/CAD pair. Let's look for buying trades today.
USD/CAD - Trade Setup
Buy Limit 1.3280
Take Profit 1.3320
Stop Loss 1.3255
Sell Limit 1.3320
Take Profit 1.3280
Stop Loss 1.3345
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