USDCAD Triangle Possible Short Trade Pending Breakout
USDCAD is currently trading in a triangle formation and as we head further into the apex a breakout could be looming.
Trading is currently restricted to a tight range with the bulls unable to break above 1.32650. This level has acted as good support and resistance on numerous occasions during the last week. If we see a decisive move above 1.32650 the situation would need to be reconsidered as we may see some further sideways consolidation before a breakout.
Stochastic has posted a bearish crossover in overbought territory and has since moved back below 80. This indicates a shift in momentum to the downside. Pending a move below the lower triangle line and the 1.32276 low a short position could be considered. My initial target for this would be 1.30763 which is the low of the triangle, depending on price action at this level we could look for a move down to target 2. This was achieved by measuring the widest part between the upper and lower triangle trend lines and projecting the measurement down from the breakout point.
Trading is currently restricted to a tight range with the bulls unable to break above 1.32650. This level has acted as good support and resistance on numerous occasions during the last week. If we see a decisive move above 1.32650 the situation would need to be reconsidered as we may see some further sideways consolidation before a breakout.
Stochastic has posted a bearish crossover in overbought territory and has since moved back below 80. This indicates a shift in momentum to the downside. Pending a move below the lower triangle line and the 1.32276 low a short position could be considered. My initial target for this would be 1.30763 which is the low of the triangle, depending on price action at this level we could look for a move down to target 2. This was achieved by measuring the widest part between the upper and lower triangle trend lines and projecting the measurement down from the breakout point.
Trade active:
Short position opened, stop loss at 1.132487.
Comment:
Stop moved to 1.32067 to protect profits.
Comment:
Stop moved to 1.31775 to protect profits.