Intro: USDCAD has made a pullback to our breakout level giving us a good opportunity to re-enter into this trade setup.
Buy above 1.2629. Stop loss at 1.2561. Take profit at 1.2909.
Reason for the trading strategy (technically):
Price has made a nice pullback to our entry and we’re looking to buy above 1.2629 support (Fibonacci retracement, horizontal overlap support) for a bounce up to at least 1.2909 resistance (Fibonacci extension, horizontal swing high resistance). We do have to keep an eye out on intermediate resistance at 1.2750 which price has already reacted off nicely once. Only a break of that level would trigger a bigger move up to 1.2909.
RSI (34) sees an intermediate ascending support hold up its bullish momentum really nicely, but we’re also seeing major resistance at 62% which needs to be broken to trigger a stronger upside move.