USDCAD Update

Back inside the range!

Things will most likely slow down from here. After the big uptrend and failed breakout/rejection candle, price is back inside the 2 year range. now what?

To me it looks like it's going to roll over after the rejection which is expected to target the other side of the (1.35907) range at the very least.

The same setup that has been going on for months. That range formed over several months and tried to break above it and turned back down every quarter of a year. At least five failed attempts in a 23 month period.

Let's look at the weekly:

Tactically within this range, the middle level will be the first target. Approximately 1.35623. Good level to start looking for longs.
Above 1.38976 will be ideal, but the rejection was very forceful. It makes no sense to wait for the price to go back up.

Weekly Back Inside the Range

If you see this kind of breakout there is no point in ignoring it. Especially when you get a signal as big as this one.

Daily chart:

Back inside the EQH (equal highs). It needs a rejection of that level to trigger a sell.
I would be surprised if it decides to oscillate between the EQH and the Yearly Open. If it does, I expect a long consolidation to build up enough momentum for a breakout.

Daily below EQH

Actions to take:

Everyone should be standing in profits, so either stay in cash or wait for a bearish trigger on the EQH.
It will take some time to reach 1.35623 and I expect this rather than a breakout. So longs are great at that level. Patience needed.

Disclaimer: This content was originally published on Zelf Trade.