USDCAD is making a move below the triangle
USDCAD is testing a strong downside EXTENSION resistance as we can see on the monthly chart 1.2950. A long-term triangle with well-defined breakout levels has been broken and retested. A break below 1.2950 is now crucial for a downside reversal and a confirmed break below is required to lead to a strong downside continuation all the way to 1.2500. A break and follow-through above 1.3300 are required for the upside extension to 1.4.
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On a daily chart, we can see that the pair is pulling back to the falling trend line after the resistance bounce. A confirmed break below 1.2950 is required for a downside extension to 1.2500. Our trading system is indicating a potential of 300 pips of profit in that case. The short trade entry could be triggered only on a confirmed break below 1.2950.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
