USDCAD - Long

28 Oca 2020

UCAD LONG - After forming a wedge on the daily TF around Feb 2019 we have been ranging sideways with confirmation from the 50 EMA on the 4h TF. With the ranging wedge offering up multiple short and long opportunities and seeing deceleration on the daily and consolidation on the 4hr we had signs of a reversal on the support level of the wedge. After breaking from the consolidation on the hourly TF to the upside and then retesting our 50 EMA we had confirmation of a short term trend change and a reversal to our resistance targets on the 4hr. After breaking even for the majority of the start of the trade we had a spike to the upside on the 22nd Jan following Governor Poloz's BoC speech, the main rate cuts were an unexpected turn, and was basically a U-Turn in the forecasted rates, however the unexpected cuts benefitted this UCAD long. We are now approaching 4hr target key level (200 pips / 4%) which is a major resistance level on UCAD for the 4hr and daily TF's.