USDCAD: A Pullback Trading Setup

-INTRODUCTION-
USDCAD is currently moving within a wide ascending channel. The price has recently reached a new high at the 1.3070 level. After reaching a new high, the price retraced, and now aims to retest the 1.2750 support level. This is a healthy pullback, as we can see from the past price action that after price has reached a new high, it tends to correct for a period of time but eventually will return to retest the recent high. Therefore, a deep pullback means a great risk to reward ratio trade can be entered to target the recent high.

-TRADING PLAN-
The price is currently approaching the 1.2750 support level. Our area of interest to enter buy positions is in between the 1.2650 ~ 1.2750 level. From this area, we expect the price to consolidate and form a kind of a pattern, and then rise to retest the previous high at the 1.3070 level. This could potentially be a good 300 ~ 400 pips swing buy trade.

We will update with a new post when a swing buy opportunity is created.

Check out our ongoing and previous pullback strategies below :)