My picks: Long USD/CAD on Close Above Trendline Resistance
Expertise: Fundamentals Combined With Technicals
Average Time Frame of Trades: 1 Day - 1 Week
Daily charts show a channel formation that has contained price for the past two months, and given the surge we've seen in the US dollar this morning, there's potential for USD/CAD to stage a sustained breakout. Falling trendline support comes into play near 1.1150/65, and if we see a close above this line, I think it provides a decent opportunity to buy USD/CAD. I'm looking to the 38.2% fib of 1.2508-1.0783 at 1.1440 and former support at 1.1463/70 as potential targets. Stops should be placed according to preferred risk/reward levels.
