USDCAD – Breaking higher from a channel

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Technical

Weekly: Previous support level of 1.3000 broken. The sequence for trading is higher highs and lows. Posted a Bullish Hammer Bottom on the Weekly chart. We look for a re-test of the downward trending support

Daily: Broken out of the channel formation to the upside. Prices are extending higher from the bullish flag/pennant formation. Short term bias has turned positive. The bullish engulfing candle on the daily chart is positive for sentiment. Further upside is expected although we prefer to set longs at our bespoke support levels at 1.3100, resulting in improved risk/reward.

Intraday: Broken out of the channel formation to the upside. Intraday dips continue to attract buyers and there is no clear indication that this sequence for trading is coming to an end. A break of bespoke resistance at 1.3100, and the move higher is already underway. We look for a re-test of the downward trending support.

We look to Buy at 1.3100

Stop: 1.2965

Targets: 1.3385 and 1.3500

UPDATE: The move to 1.3100 @ 21:05 (11/09/2018) has triggered our long trade.

UPDATE: Trades hit the stop at 1.2965

 

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Before deciding to invest in spot foreign exchange or futures you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with spot foreign exchange and futures trading, and seek advice from an independent financial advisor (IFA) if you have any doubts. All information posted on this website is of our opinion and the opinion of our visitors, and may not reflect the truth. Please use your own good judgment and seek advice from a qualified consultant or IFA, before believing and accepting any information posted on this website.

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