Over the last week or so, both our Forex Market Update and Twitter profiles have been been talking about a possible USD/CAD buy setup.
Long term, price is trending up and we have what now looks like a bull flag running down to the trend line.
Price has tested the bottom of the flag 3 times now, with the latest touch, barely coming into our marked demand zone before being rejected higher.
After putting the idea out there on Twitter, a few alternatives came back that I have to share.
The first from @Delta_Three showing that if a middle line is drawn as trend line support of the broken short term trend line, a range has also been completed.
— Delta3 (@Delta_Three) May 11, 2015
The next chart from @DougMcDougall shows the bull flag channel drawn at a tighter angle with some areas to watch out for. Interestingly, since this chart was Tweeted yesterday, price rejected off the top of Doug’s channel and made a new low back into demand.
— Doug McDougall (@DougMcDougall) May 11, 2015
If price gets sucked lower for another touch into the demand zone then we are looking at a break but there is definitely a low risk buy play at current levels.
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