Market Condition: USD/CAD Pending Breakout
Target 1:______2X ATR at 1.3948
Target 2:______4X ATR at 1.4102
USD/CAD Daily Chart with Yearly High
The USD/CAD has retraced off of its yearly highs, to test a key value of support at 1.3600. If prices remain supported, traders may begin looking for new breakout opportunities over the standing 2017 high at 1.3794. Current daily ATR for the USD/CAD reads at 77 pips. Traders looking for a 2X ATR pricing target may set initial orders to take profit near 1.3948. Further extensions include a 4X ATR profit target near 1.4102. Traders may also consider using ATR to manage risk. A 1X ATR stop loss at 1.3717 may be considered to create an initial 1:2 risk/reward ratio.
In the event that the USD/CAD fails to breakout to a higher high, traders should watch for the pair to decline beneath 1.3600. A move below this price may suggest that a larger bearish correction is occurring. In this scenario, traders may elect to delete any pending orders to buy the market while looking for other breakout opportunities elsewhere.
--- Written by Walker, Analyst for DailyFX.com
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