WEEKLY: USDCAD Strategic View: Bullish breakout, time to go long
Published on: February 23, 2018
Buy above 1.2643. Stop loss at 1.2422. Take profit at 1.3128.
Reason for the trading strategy:
Price has broken out of our long term descending resistance line signalling that we’re likely to see a bullish recovery to 1.3128 (Fibonacci retracement, Fibonacci extension). Our major support is in line with our breakout level and is at 1.2643 (Fibonacci retracement, horizontal overlap support).
RSI (89) remains under strong bearish pressure and is starting to test the line. We have to monitor this and only a bullish exit would confirm our bullish move in price.