USD/CAD Prepares for a Bullish Breakout
Market Condition: USD/CAD Daily Breakout
Target 1: 2x ATR 1.3410
Target 2: 4x ATR 1.3676
Invalidation: Continued Consolidation Under 1.3100
(Created using Marketscope 2.0 Charts)
The USD/CAD advanced as much as 388 pips last Friday, and is now attempting to breakout to a new 20 Day High. Traders looking to join the bullish trend may look to place entry orders above the June 2 high at 1.3144. Current Daily ATR for the USD/CAD reads at 133 pips. Traders looking for a 2X ATR move may plan for initial profit targets near 1.3410. Alternatively, a 4X ATR extension places targets near 1.3676
Traders may also consider using a 1X ATR stop at 1.3011. This creates a 1:2 Risk/Reward ratio for an attempted breakout when an initial take profit point of 1.3410 is used.
In the event that prices fail to breakout to a new 20 day high, traders may elect to delete any pending entry orders. If price action remains under 1.3100, it may signal further consolidation for the pair.
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.