USDCAD: Wedge Break Points to Rally
Strategy: Pending Long
USDCAD followed a Bullish Engulfing candlestick pattern with a move higher as expected, breaking the top of a Rising Wedge chart formation set from late November. Risk/reward considerations argue against entering long at current levels with prices pushing up against support-turned-resistance in the 1.0028-51 area and we will look for either a pullback or a break higher to enter a trade.
Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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