USD/CAD Key Points
- Higher time frame, USD/CAD triangle.
- Breakout on the daily confirmed.
- Intrday retest of previous short term support turned resistance plays out cleanly.
USD/CAD Technical Analysis
Just wanted to whip up a quick trade recap of yesterday's USD/CAD daily triangle breakout.
Can you see the potential for low risk, high reward trade setups that this sort of trading strategy offers, yet?
Here's yesterday's USD/CAD hourly chart and what we were looking at on the chart:
This is where things get really interesting to me because I can instantly see a way to trade this one. So we have price within a higher time frame resistance zone, while on the intrday charts price has made a lower low and retested an area of short term support which we expect to now act as resistance.
Now take a look at the updated hourly chart for how the setup played out:
Perfectly, as expected!
The intraday retest of previous short term support turned resistance (shown in white on the chart), held and no matter where you entered, your drawdown was minimal.
This means that even those of you who aggressively traded this setup, with an extremely tight stop loss, absolutely cashed the fuck in once the drop started.
We can thank a CAD CPI beat of expectations and a US Federal Reserve whacked out on cheap money for that.
Best of probabilities to you.
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