USDCAD: Long Trade Taken as Prices Break Key Resistance

Last week, we wrote that “USDCAD may be on pace to put in a double bottom above 1.0630 with prices hinting at a forming Morning Star bullish reversal pattern.” This scenario has now materialized, with additional confirmation on a break above falling trend line resistance established from the highs in March as well as positive divergence on the RSI oscillator. We will enter long from here, with an initial soft target at 1.1130 and a stop-loss activated on a daily close below 1.0779.

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