USDCAD Weekly Breakout Set up
Hi everyone !
Today I would like to share a Trade Idea that I am playing this week, which is most likely to perform well due to a combination of fundamentals and technicals.
After the recent reversal taking place with the broad dollar and the sell off in the equity markets.
The oil sector is going to suffer the consequences of a strong dollar + a slow economy which will most likely results in a weak demand for oil .
As a commodity currency the Canadian Dollar is in a bad position to resist against a strong dollar, a global economy slow down and a weak oil price.
A logical move would be a depreciation of the currency against dollar.
If we look at the pair technically we have seen a strong correction after the 1.46 high going under a strong support at 1.3667.
Early this morning, we have seen a break of this level. A continuation will open the gate of a stronger move on the upside to target the 1.38 first then 1.40 and above if there is no improvement in the global economy during the coming months.
The scenario would be invalidated under 1.3570.
Stop 1.3570
Entry 1.367
Target 1.38
Extension 1.40
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