USDCAD 1 Hour Chart
The pair has been consolidating between 1.40 and 1.41 and has breached the upper resistance level. With oil prices further in the red today and with recent price action in USDCAD failing to reach the key 1.40 handle traders will be looking for a retest of the highs around 1.45 and maybe beyond.
This is a typical consolidation pattern that traders look for with at least two attempts for price to break out of the consolidation range.
Coupled with President Trump deciding not to put New York into lockdown which has given the US Dollar a small lift in the current session and adds to our theory that this set up should prevail and price action in the pair should continue to trend higher.
Key levels are:
- Entry: 1.4140 Long position taken,
- Stop Loss: 1.3995
- Target: 1.4525