Recommendation: BUY

Current Trend: Short-term up.  Med-term sideways.

Strategy: Buy at current levels or better.

• The USDCAD broke out above line 2 (of a channel with line 1) and has a higher short-term target in place. That target is 1.2750/1.2760, based on the height of the channel.
• Channel 1-2 is also a potential right shoulder of a med-term inverse head and shoulders (S-H-S?). If so, then this currency pair has a lot more upside potential. This is something we’ll be monitoring closely.
• For now, buy at current levels or better. And take profits at its short-term target  1.2750/1.2760.
• Its short-term stop is a close above 1.2550 initially. From 1.2700 bring the stop up to below line 2 (1.2600). And from 1.2730 use a breaking of its prior one day low as a trailing stop.

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