We are looking at another set up here on the USDCAD.
Markets are moving towards the safe havens, USD and JPY.
Commodity related currencies may weaken as recession fears are increasing.
The pair has broken a bull flag structure after being rejected from the 50% Fib retracement.
USDCAD – Daily Time Frame
We have seen a bullish breakout from a bull flag formation. This suggests we may see further upside on the pair.
USDCAD – 1 Hour Time Frame
We are looking to target the 1.27% FIB extension, this level is also a retest of the broken pennant formation.
Trade Setup: BUY market execution, current price 1.3596, stop loss 1.3481 and take profit 1.3780.
Stop loss: 115 pips
Take profit: 184 pips