Bullish Breakout On USDCAD
FХ Strategist & Financial Commentator
After a false breakout of the support area around 1.3050 during the last session of 2019, this pair was able to build a strong bullish swing, with a fast comeback towards 1.33 area where a triple top was marked during the first three sessions of this week.
UsdCad is now testing a very strong resistance that like a wall, was unbreakable in the months of September October and November 2019, despite of several attempts.
Taking a look at the RSI indicator we can detect a double top above the overbought level that could create a bearish divergence over the next few days.
However, I believe that before a possible recovery of the Canadian dollar, it will occur the breakout of 1.33 with a possible acceleration towards 1.3380 in order to test the very top of September 2019 and the 61% Fibonacci retracement.
The possible breakout it seems to be confirmed by the structure of the last three trading sessions with a bullish marubozu, followed by two inside sessions,
with the pair that looks ready to breach the current weekly top in the next hours.
This setup would be denied only in case of a daily close below Monday’s bottom around 1.3220
As always I recommend to trade carefully and to plan at best every move. Have a good trading and see you for the next video.