USD/CAD: awaiting a breakout. Bulls or bears for the win?
First and foremost, please, do not mind my Picasso-esque drawing.
Secondly, and most importantly, a massive triangle pattern has been formed and we are awaiting a breakout + pullback (re-test) of either one of the barriers of it before forming up our bias. If the upper diagonal gets penetrated, then we will wait for a slight retracement before - potentially - going long. On the contrary, if the lower boundary gets broken and retested, then we will be on the side of the bears.
Last but not least, trading should be reactive and adaptive; meaning, it is not for sure that our setup will play out exactly as analysed. Thus, we will monitor the price development before executing a valid position.
Secondly, and most importantly, a massive triangle pattern has been formed and we are awaiting a breakout + pullback (re-test) of either one of the barriers of it before forming up our bias. If the upper diagonal gets penetrated, then we will wait for a slight retracement before - potentially - going long. On the contrary, if the lower boundary gets broken and retested, then we will be on the side of the bears.
Last but not least, trading should be reactive and adaptive; meaning, it is not for sure that our setup will play out exactly as analysed. Thus, we will monitor the price development before executing a valid position.