FX Reversals USDCAD Morning Breakout Update
USDCAD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The USDCAD, began the Friday U.S. trading session reversing between key points of range support and resistance. Prior to this morning’s Canadian employment data the USDCAD rested at the S3 camarilla pivot support line found at 1.0915. A worse than expected data print then caused the pair to bounce immediately off the S3 pivot and then breakout above the R3 resistance line at 1.0934. With a move through the pivot range, traders should begin to watch the R4 line as the last point of resistance for the pair.
The daily USDCAD R4 resistance pivot is currently at 1.0944. As price moves above this value signals a conclusion of the early range bound environment as price moves to a higher high. Directional traders may use this strong surge in momentum to consider new buy orders with the current trend. However breakout traders should be aware, a reversal back inside of the trading range would insinuate a close to the current breakout market.
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---Written by Walker England, Trading Instructor
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