Trade Recommendation: USDCAD

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This is a short term bullish breakout trade. The Canadian Dollar has a lot of support at this level. The 3 Day and 6 Day Rolling Pivot Ranges are sitting on top of each other. The Daily Pivot Range too is smack dab in the middle of these Rolling Pivots. But so too is the price at the time of writing. So we need to see the price trade above these Pivot levels for a breakout to the upside.

With the Weekly Pivot Range wound so tight that all numbers are equal, meaning the high, low and Pivot numbers are the same level of 1.2824, this is extremely rare. This is providing solid near term support. Just underneath is the long term support of the Monthly Pivot Range.

Hence the action to take is to buy on a break above the 1.2866 6 Day Rolling Pivot high level.

Place the stop loss and profit targets as stated below.

Entry Price: 1.2866
Stop Loss: 1.2823
Profit Targets: First profit target 1.2914. Second profit target is 1.2930. As the market moves higher on the breakout, trail a stop loss 35 pips until second profit target is hit.

Disclaimer: Disclaimer: The writer has no positions in the forex markets but does engage in short-term trading of forex and futures.

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I am the founder of VirtuesTrading.com, where traders can learn to use my Virtues Trading System. Formerly a Commodity Trading Advisor, I got my start in the Energy and Precious Metals Options & Futures pits of the New York Mercantile Exchange. I operate on the premise of efficient markets, the management of risk through the analyzation of price action and technical indicators. I have a BA in International Relations from the University of Southern California.