USD/CAD—Long Trade Entered at 1.25, Will activate on a Pullback

USD/CAD (1.2599)

• Resistance Levels: 1.2647, 1.2828, 1.2972
• Support Levels: 1.25, 1.2355, 1.2228
• Trade Strategy: Pending Long Trade to Activate when Price Hits 1.25

The USD/CAD is ready to advance again. The US Dollar has broken out of its Triangle Pattern that this market has been stuck in since January. Please see the below daily MT 4 chart.

A close above 1.2647 will open the doors for a challenge of the next technical resistance level at 1.2828. This level is the end of a congestion area that starts at 1.2801. A close back below the triangle top, at 1.2501/1.25, today will see a challenge of the technical support at 1.2355. This is the February 2 low.

Right now the price action is too close to a resistance level to enter a long trade. I am waiting for a pullback to 1.25. I have set the trade to activate with a fall through 1.2501, the triangle top. Should this trade be activated, my first target is at 1.2647. I will place a stop loss at 1.2355 (activated with a break below this level).