With OIL gaining traction everyday since the conflict began, the commodity linked/ OIL linked CAD has been seesawing against the in demand SAFEHAVEN USD. Based on the daily technical picture, we can see this statement backed by rising strong ascending trendline on our main chart.
USDCAD now would likely take a dig at its next target located at 1.29400. However before this happens, the daily candle must first close above 1.28170. This close would give us conformation that indeed the resistance has been broken and the price is ready to head higher.
Once this breakout is confirmed, a LONG trade can be executed based on ideal risk to reward ratio. With ideal RR being not less than 1, it would be advisable to wait for price to retrace and then execute this trade. The main chart would provide these details in deep as you observe it.
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USDCAD now would likely take a dig at its next target located at 1.29400. However before this happens, the daily candle must first close above 1.28170. This close would give us conformation that indeed the resistance has been broken and the price is ready to head higher.
Once this breakout is confirmed, a LONG trade can be executed based on ideal risk to reward ratio. With ideal RR being not less than 1, it would be advisable to wait for price to retrace and then execute this trade. The main chart would provide these details in deep as you observe it.
Cheers, I hope you found this insight helpful. FOLLOW & LIKE for more insights on major currencies pairs
