USD/CAD – Triangle offers an upside bias

Ian Coleman FXStreet

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.

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.

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.

We look to buy at 1.3340

Stop: 1.3270

Targets:1.3600

Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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