Good afternoon team,
This week we have seen a continuation of the risk off move with global equities moving lower along with crude oil. The USD has moved higher due to the increased demand for safe haven currencies. We are now looking to position on the USDCAD as we expect a bounce from the double bottom zone and for crude to continue its downside which should play into this position.
USDCAD – Weekly Charts
Based on the double bottom formation and falling wedge we are expecting a larger reversal on the pair.
USDCAD – 1 Hour Charts
The 1 hour charts are also showing a shorter term falling wedge breakout suggesting bulls are back in control.
Trade Setup: BUY Market execution, current price 1.2168, stop loss 1.2068 and take profit 1.2668
Stop loss: 100 pips
Take profit: 500 pips