USD/CAD – Triangle offers an upside bias

Technical

Monthly: We had an impulsive rally from the 2011 low (0.9407) to the 2016 high (of 1.4690). The correction lower found buyers close to the 50% pullback level of 1.2049. Mixed trading for the last 38 months looks to have formed a corrective channel. Trend line resistance is located at 1.3758. Trend line support at 1.1639.

USDCAD

Weekly: Reacting lower from levels close to the 61.8% pullback of 1.3685 (from 1.4690 – 1.2061). Bearish Outside Candle posted, often an indication that the rally has come to an end. Mixed trading for the last 10 weeks has highlighted the possibility of a higher correction.

USDCAD

Daily: Holds within a symmetrical triangle pattern. A break of 1.3441 and the measured move target is 1.3600. We look to buy mild dips to improve risk/reward. The stop is placed outside the trend of higher lows.

USDCAD

We look to buy at 1.3340

Stop: 1.3270

Targets:1.3600

Trading carries a high level of risk to your capital. Losses can exceed deposits. Please read the full risk warning here.Trading spot foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. You may lose all your capital. Loses can exceed deposits. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. If you are in any doubt about investment or the mechanics of such products, you should seek independent financial advice