USDCAD a two-way trade
USDCAD price action is testing the previously broken long-term consolidation triangle resistance line 1.3000-1.3050 and is bouncing as we can see on the weekly chart. We are within a long-term downtrend channel with well-defined breakout levels. For the clear downside reversal continuation from here, we need to see a confirmed price action break below 1.3000. A break and a follow-through above 1.3350 are required for the upside bounce and a continuation higher to channel top.
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On a daily chart, we can see that the pair is testing the wedge resistance 1.3200 for the upside breakout and a continuation higher to test 1.3350. Look for the short trade entries upon a break above 1.3200. Our trading system is indicating a potential of 200-300 pips of profit. The short trade entries invalidation to come only on a clear daily close below1.3050 and would trigger stops and a reversal of trade from long to short trade entry.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
