Profit target hit! Woohoo! Thanks to weakness in Canada’s economic figures, USD/CAD bounced from the triangle support and climbed up to the forex resistance at the 1.2600 mark. I mean, did you see those dismal Canadian retail sales figures released last Friday?!
Of course I got a bit worried that any updates on the Greek debt negotiations and the return of some traders from their Chinese New Year holidays might lead to huge weekend gaps so I decided to move my stop to entry then. Fortunately, USD/CAD resumed its climb at the start of the week and reached the top of the triangle.
P/L: + 150 pips / +1.00%
I’ll still be keeping close tabs on this triangle setup, as a few more top-tier reports are lined up from both the U.S. and Canada. I’m biased towards an upside break since the U.S. is on a fundamentally stronger footing compared to Canada, but I’m also inclined to think that positive developments in the Greek debt negotiations might spur risk appetite and boost the Loonie this week.
What do you think?
Cheers,
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