Trade Of The Day: USDCAD Double Top Test

USDCAD – Bulls Target A Retest Of 2015 Highs

CAD  lifted following a bounce in the price of crude oil, improving from its weakest level in more than six weeks after a surprise fall in domestic manufacturing. Crude oil rose after strong losses recently as the Paris attacks elevated the prospect of heightened geopolitical tensions that could threaten global supply. US crude prices settled up 2.45 percent to $41.95, while Brent crude added 0.8 percent to $44.83.

While bids at 1.33 cap intraday downside reactions bulls now target a retest of 2015 highs, only a close below 1.3260 eases immediate bullish pressure.

Trade Idea

  • I will be monitoring intraday reversal patterns as price retests year to date highs. The highs now have an AB=CD symmetry pattern that is confluent with the price zone. Ideally I will be looking for stops to be run above the highs and then a reversal pattern to set up. Will venture short initially targeting a retest of the ascending trend line highlighted in the chart below.

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