USDCAD: 1.2800 Upside target within reach after barely missed on July 7th, and pushing again towards March high of 1.2833
The daily candle chart below shows the medium term price history of United States Dollar (USD) against the Canadian Dollar (CAD). This currency pair is known as USDCAD, and is trading near 1.2749 around time of publication today.
Last time USDCAD was last reviewed in Ideas You Can Trade was earlier this month when the pair was trading above 1.25 and the trend was bullish with 1.28 mentioned as the upside target.
Since then USDCAD continued higher but missed 1.28 by less than 30 pips last Tuesday, and then pulled back to 1.2660. Today the pair is pushing again higher and hit 1.2788 as buying pressure builds under the key resistance area of 1.28.
If 1.28 is missed a sharp drop should occur, whereas if breached then the year-to-date higher of 1.2833 hit on March 18h should be the next resistance level higher.
Below are examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1.2801 with a Limit to take profit @ 1.2833 and a stop-loss @ 1.2769 Risk/Reward Summary: Limit risk = +32 pips profit / (-32) Stop-loss risk = Gain to Loss ratio = 1.00
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1.2674 with a Limit to take profit @ 1.2645 and a stop-loss @ 1.2699 Risk/Reward Summary: Limit risk = +29 pips profit / (-25) Stop-loss risk = Gain to Loss Ratio = 1.16
Medium term daily candle chart: