USDCAD: Exit From Uptrend Confirmed After Resistance Held Under 1.1000
The daily candle chart below shows the price history of United States Dollar (USD) against the Canadian Dollar (CAD), known as USDCAD, and trading near 1.0859 around time of publication today.
Last week the pair had exited the lower support line of a widening bullish channel, after resistance was encountered under 1.10 and which was described in the last post about this pair in the Ideas You Can Trade.
Unless the uptrend is regained a bearish continuation is likely, with the next support near 1.0800 were a bounce has already occurred just last Friday. If the uptrend is regained the exit could be considered a delayed false-breakout but 1.10 still remains a resistance barrier for further upside.
With the Labor day holiday underway in the U.S. today, a number of markets are closed according to the holiday trading hours listed on the WorldWideMarkets website.
Below are examples of how to trade a bearish continuation or a bullish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1.0949 with a Limit to take profit @ 1.0989 and a stop-loss @ 1.0910 Risk/Reward Summary: Limit risk = +40 pips profit / (-39) Stop-loss risk = Gain to Loss ratio =1.02
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1.0848 with a Limit to take profit @ 1.0805 and a stop-loss @ 1.0884 Risk/Reward Summary: Limit risk = +43 pips profit / (-36) Stop-loss risk = Gain to Loss Ratio =1.19
Medium term daily candle: