Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
USD/CAD Prepares to Breakout Next Week

USD/CAD Prepares to Breakout Next Week

Walker England, Forex Trading Instructor


Market Condition: USD/CAD Daily Breakout

Target 1: 1x ATR1.2540

Target 2: 2x ATR1.2427

Invalidation: False Breakout to1.2800

USD/CAD Daily Chart

(Created using Marketscope 2.0 Charts)

The USD/CAD has declined as much as 328 pips last week, and closed trading just off the monthly low that resides at 1.2653. With price action consolidating going into the weekend, traders may begin to plan for the markets next major breakout. With 1.2653 now acting as daily support traders looking to join the trend may elect to place entry orders beneath this value.

Current daily ATR reads at 113 pips. Traders looking for a bearish breakout may extrapolate a 1X primary profit target at 1.2540. This may be followed up with a secondary 2X ATR target at 1.2427. In the event of a false breakout a ½ ATR stop may be used near 1.2800 to create a positive Risk/Reward ratio.

In the event that prices fail to breakout lower next week, traders may elect to delete any pending entry orders. A move to a new swing high would suggest that any bearish breakouts have been at least temporarily suspended.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.