USDCAD: Waiting for Bullish Breakout
USDCAD has carved out a clear-cut Head and Shoulders Bottom bullish reversal chart pattern, taking out the formation’s neckline at 0.9682 and pushing higher through the first layer of falling trend line resistance set from late December 2010.
Prices initially stalled and pulled back from a longer trend line dating back a month prior to November, but are now back and testing the waters above it having put in a Bullish Engulfing candlestick on a retest of the neckline. I will look for confirmation on a daily close above said trend line (now at 0.9771) to enter long. The Head and Shoulders setup implies a measured target at 0.9920.
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