USD/CAD: Rising Wedge Breakout

Thanks to the dovish BOC rhetoric in their latest monetary policy statement, USD/CAD made another upside break from a consolidation pattern. As you can see on the 4-hour chart below, the pair took a breather from its rallies by crawling inside a rising wedge while traders awaited the BOC rate decision.

usdcad

Although the Canadian central bank decided to keep rates unchanged at 1.00% for now, Poloz didn’t refrain from hinting that they are ready to ease if needed. After all, their inflation outlook remains weak and economic data has been surprising to the downside.

I know I’m a bit late to the anti-Loonie party, as I just decided to hop in at market (1.1100) when I saw the upside break from the wedge. With that, I only risked half my usual position size for now and I plan to add if the pair pulls back a bit. Right now, my initial stop is set below the latest bounce around 1.0940. Don’t forget to check out our risk disclosure if you’re planning to join me on this!

Cheers,

Happy time

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  • lin

    + +

    • Happy Pip

      Did you take this trade too?

      • lin

        i like this words:I only risked half my usual position size for now and I plan to add if the pair pulls back a bit. i like your sl and want to know your tp.

        • Happy Pip

          Thanks for the kind feedback! I still haven’t determined a hard level for my target, as I plan to play it depending on how upcoming data turns out. Crossing my fingers it reaches 1.1600 or at least 1.1400 as many analysts and traders predict!

  • Mandy

    Hi Happy Pips,

    I am also interested in the USD/CAD trade. I believe you are going long in USD. Can you please share your trade set ups if going long in USD

    Entry price:
    Stop Loss:
    Limit :

    Thanks

    • Happy Pip

      Hey Mandy! Thanks for checking out my trade blog! I went long at 1.1100, stop loss at 1.0940, and target to be determined. I am setting my sights at the 1.1400 mark (or even 1.1600 if rate cut expectations get stronger) but I’ll be ready to exit if the fundamental story changes.

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