USDCAD Broke Out of Its Descending Resistance, Remain Bullish
Buy above 1.2627. Stop loss at 1.2527. Take profit at 1.2829.
Reason for the trading strategy (technically):
Price is testing its support at 1.2627 (76.4% Fibonacci retracement, horizontal overlap support) where we expect it to rise to its resistance at 1.2829 (76.4% Fibonacci retracement, 50% Fibonacci retracement, 100% Fibonacci extension, horizontal overlap resistance). We do have to be cautious of the intermediate resistance at 1.2730 (61.8% Fibonacci extension, 50% Fibonacci retracement, 38.2% Fibonacci retracement, horizonal pullback resistance).
RSI (89) shows a bullish breakout as well as a bullish divergence with price which contributes to our bullish bias.
Reason for the trading strategy (technically):
Price is testing its support at 1.2627 (76.4% Fibonacci retracement, horizontal overlap support) where we expect it to rise to its resistance at 1.2829 (76.4% Fibonacci retracement, 50% Fibonacci retracement, 100% Fibonacci extension, horizontal overlap resistance). We do have to be cautious of the intermediate resistance at 1.2730 (61.8% Fibonacci extension, 50% Fibonacci retracement, 38.2% Fibonacci retracement, horizonal pullback resistance).
RSI (89) shows a bullish breakout as well as a bullish divergence with price which contributes to our bullish bias.