USD/CAD Long Setup

USD/CAD Long Setup

USD/CAD OANDA:USDCAD


USD/CAD             had entered a parallel channel since the end of July and has been keeping within till the breakout 2 days ago to the upside and rejected the resistance level of 1.3125. We can see price action has come down to retest the channel and is struggling to re-enter and has rejected it by forming a doji and a spinning top on the H4, implying uncertainty and a potential reversal to the upside yet again. This suggests to me that this pair will bounce back from this current region and re-test the resistance level in the coming days, giving this setup a target of 100 pips and keeping the stop loss at 50 pips giving a decent risk/reward.