Rectangle on USD/CAD

Rectangle on USD/CAD

There is an interesting technical pattern on the USD/CAD currency pair. At the moment, the quotes are consolidating after a significant growth since the beginning of this month. The key range is 1.31600-1.32000. In the trading instrument, a classical figure of the technical analysis, "Rectangle" (H1 timeframe) has been formed. We recommend paying attention to this situation.

If the price fixes above the round level of 1.32000, it is necessary to look for entry points to the market to open long positions. The movement is tending to 1.32500-1.32750. When following the position, we recommend using a trailing stop.

Alternative option. Rectangle quite often acts as a reversal formation. If the price fixes below 1.31600, the correction of the USD/CAD currency pair is expected. The target movement level is 1.31000-1.30800.

by JustForex, 2018.09.06

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
Stop and Limit Orders in Forex
There are many gainful opportunities for traders in the forex market, but no one is immune to losses. That’s the reason why traders should employ an efficient trading strategy where both stop and limit orders go hand in hand with other essential aspects of the strategy.
Read more
Top 10 Successful Forex Traders in Indonesia
Due to the growing popularity of forex trading, it’s impossible to stay on the sidelines. What does it take to become one of those confident traders? Is forex trading for you? Find out more about the nature of this industry and have a look at the list of top Indonesian forex traders in 2021.
Read more
Guide to Forex Trading in Indonesia
What is forex trading? It’s freedom – due to the round-the-clock market operation in different parts of the world, hundreds of thousands of traders choose what’s best for them: time frame, asset, strategy, objectives, amount of a deposit, etc. There might be a lot of questions in the beginning of your trading journey, and this article aims to emphasize the essential aspects of this profession.
Read more