USDCAD has been consolidating in a descending triangle similar to the EURJPY one that was broken out of last week.
The descending triangle suggests a break down of prices.
There is an overlap of intermediate supply zones and the downward sloping trend line which suggests confluence and gives confidence in the play.
Price should break out strongly out of the multiple-tested support at ~1.24000
A strong intermediate demand zone @ ~1.21000 is a good place to take profit of 500 pips.
Price is likely to fall further than 1.21000 but may see a bounce back up to ~1.24000 to test the new resistance area. before heading off.
Trades can be made to catch the bullish counter-trend swings in this move.
This is going to be greatly affected by Friday's news.
The descending triangle suggests a break down of prices.
There is an overlap of intermediate supply zones and the downward sloping trend line which suggests confluence and gives confidence in the play.
Price should break out strongly out of the multiple-tested support at ~1.24000
A strong intermediate demand zone @ ~1.21000 is a good place to take profit of 500 pips.
Price is likely to fall further than 1.21000 but may see a bounce back up to ~1.24000 to test the new resistance area. before heading off.
Trades can be made to catch the bullish counter-trend swings in this move.
This is going to be greatly affected by Friday's news.