By Admiral Markets
The USD/CAD has formed a contracting triangle in the uptrend, signalling for a potential retracement. At this point traders should pay attention to two possible breakout points. A breakout to the upside could happen at the break of 1.3742 level (D H3 and Upper triangle trend line) while a breakout to the downside could happen if 1.3695 breaks (D L3 and Lower triangle trend line). The point where trend lines cross camarilla pivot point is called an X Cross. Target for the upside breakout is 1.3800 while the target for the downside breakout is 1.3635.
However as the price is generally in uptrend, if 1.3635 is hit, we could see another push to the upside targeting 1.3695 and 1.3800.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
Free Reports:
D H4 – Daily Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Daily Camarilla Pivot (Daily Support)
D L4 – Daily H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
Article by Admiral Markets
Source: USD/CAD Contracting Triangle In Uptrend
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