USD/CAD's Bullish Channel With Room to Move | Vantage FX

USD/CAD’s Bullish Channel With Room to Move

May 2, 2017

Good morning!

And just like that, a deal has been reached on a bill to fund the US government for the final five months of this fiscal year. An agreement that is likely to avert a government shutdown and save traders another headline driven mish-mash that we dealt with barely 12 months ago.

In holiday trade that was expected to remain fairly quiet, this deal has definitely given markets a slightly unexpected kick.

Just check out USD/CAD.

USD/CAD Daily:
160502_usdcad_daily
Click on chart to see a larger view.

I’ve redrawn the daily USD/CAD bullish channel from January’s blog, but the direction and setup stay the same.

The subjective nature of trend lines mean that there are a few ways that you could have drawn this one. However, as usual the best way to go about drawing them is to connect the most obvious touches. Usually these are the first two that immediate jump out at you.

In a sometimes overly complicated industry such as trading, keeping it simple (stupid) really is best.

USD/CAD 4 Hourly:
160502_usdcad_4hourly
Click on chart to see a larger view.

Taking a step downward, into the intraday charts with the 4 hourly, you can see a nice breakout and retest of the swing high level.

With the amount of white space on the chart between the market price and the top of the bullish channel, could we be in for a further upward move?

Let us know by tagging @VantageFX in a Tweet featuring your own charts or ideas.

Dane Williams – @VantageFX

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