Good morning team,
We have been pretty patient with the USDCAD waiting for the correct opportunity for a breakout trade. It appears as though the pair is breaking out of a shorter-term bull flag structure so we will be looking to capitalise on the move. Oil remains fragile on the key trend line support, if the price of crude breaks down from here we can expect a pick up in the USDCAD. Despite the team having a bearish outlook for the USD index, the USDCAD can still move higher due to volatility on the CAD and oil prices.
Crude Oil – 4 Hour Charts
USDCAD 4 Hour Charts
We can confirm a breakout of the longer-term falling wedge structure and the price action has retested the broken trend line, which provides a bullish outlook.
USDCAD 1 Hour Charts
Trade Setup: BUY Market Execution, current price 1,2577, stop loss 1.2500 and take profit 1.2722-1.2822.
Stop loss: 77 pips
Take profit: 145-245 pips