There is an interesting technical pattern on the USD/CAD currency pair. At the moment, the quotes are consolidating after a significant growth since the beginning of this month. The key range is 1.31600-1.32000. In the trading instrument, a classical figure of the technical analysis, "Rectangle" (H1 timeframe) has been formed. We recommend paying attention to this situation.
If the price fixes above the round level of 1.32000, it is necessary to look for entry points to the market to open long positions. The movement is tending to 1.32500-1.32750. When following the position, we recommend using a trailing stop.
Alternative option. Rectangle quite often acts as a reversal formation. If the price fixes below 1.31600, the correction of the USD/CAD currency pair is expected. The target movement level is 1.31000-1.30800.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account