Long on the 'Loonie'
TECHNICAL TAKE - SUMMARY ->
USD/CAD currency pair
Direction: Buy (Long)
Stop: Loss: 1.2500
Take Profit 1: 1.2770
Take Profit 2: 1.2930
The Loonie (UsdCad) had been in descending channel from the beginning of June this year. On Monday the 31st of July the price action closed outside the channel on the daily chart. The following day it tested the upper end of the channel when the pair retraced slightly.
The currency pair has remained above the support line of the channel and has confirmed the breakout. Once you have a closer look at the pair in a four-hour chart, you will see that the sentiment is still bullish, however the indicator that is confirming the long position is the golden cross that completed in the wee hours of the day (03/08/17) on the hourly chart (both below).
The entry for the trade is at 1.2640 and the stop loss at 1.2500 and the target prices at 1.2770 and 1.2930 respectively.
Figure 1: 4-hour chart
Figure 2:1-hour chart
Remember... trade responsibly, your capital is at risk and trading can lead to capital losses.
Until next time, I wish you profitable trading.
All charts sourced: Bloomberg
Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.