USD/CAD Pending Daily Breakout
Market Condition: USD/CAD Pending Breakout
Target 1:Bullish 1.3193 Bearish 1.2992
Target 2:Bullish 1.3260 Bearish 1.2925
(Created Using IG Charts)
The USD/CAD is set to conclude today’s session with the creation of an inside bar. Traders may elect to use last Friday’s high and low as a reference, and plan for a breakout later in the week. Bullish breakouts may be identified over Friday’s high of 1.3156. Alternatively, bearish breakouts may be identified under the low at 1.3059. The identified range measures 67 pips, and this value can be used to measure preliminary pricing targets. Half the value of the range may then be used to manage risk and create a 1:2 risk reward ratio.
In the event of a false breakout traders may elect to wait for further price action confirmation prior to reentering any positions. Alternatively, if the USD/CAD fails to breakout, traders may opt to trade further USD/CAD consolidation.
--- Written by Walker, Analyst for DailyFX.com
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