Good evening guys,
Some nice technical structures are forming. If there is a rejection on the EURUSD BEAR Flag formation this set up will most likely play out as well.
The USDCAD has pulled back lower from the top of a pennant formation. We are looking to buy the breakout on this one. The US reports their GDP and Continuing Jobless Claims tonight. This could filter through to all USD pairs. Weaker oil prices also support USDCAD long positions.
USDCAD 4 Hour Charts
The pennant formation has capped yesterday bullish run. We are now looking to position to buy the breakout on the pair.
Trade Setup: BUY STOP – Entry 1.3342, stop loss 1.3282 and take profit targets 1.3419-1.3450.
Stop loss: 60 pips
Take profit: 77 -108 pips
If the news tonight is USD negative and the USDCAD fails to break through the pennant, close down the position.