Possible Head and Shoulders on Loonie USDCAD 160916

How to trade this plan

1. Target for month MR1 – have not reached it yet, currently resistance above current price on daily has held. This could change and bulls will try and hit target. Keep an eye on oil, CAD and US data
2. Price is at H4 21 and a higher high is expected though bears will sell at what could become the right shoulder. Should price fall and retrace to neckline I will look to a lower time frame for an entry
3. I have highlighted the current area in blue on H1 as we are below the 21 and 55 though also at support, therefore bulls could buy here and bears could sell here – if price moves up then I am going to pay attention to price action at what could become the right shoulder. If price falls here then I am looking for a break of the next support level and will then sell the pullback
4. Crude oil and Cad data releases later today. Also keep an eye on US CPI

Note:
a. Please read Kate’s post on Forex Major Currencies Outlook everyday so you are up to date with the latest news. You can follow Kate here
b. Please be aware of risk events for the day by using the Forex.Today calendar
c. Watch Wayne’s webinar daily at 13:30 SAST or catch the recording on the Forex.Today Youtube Channel

USDCAD Daily

USDCAD H4

USDCAD H1

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