USD/CAD Breaks Ceiling, Follows Uptrend

The 240 minute USD/CAD is trending higher as it has broken the 1.1500 resistance and psychological level. The set up discussed yesterday considered what the set up would be if prices could not break the ceiling, as the Initial Trend was not high and there was considerable resistance on short term charts. Considering the reversal was just one scenario; the other scenario was the trend follow or continuation.




Any trending pattern such as a Continuation Rising Wedge does have the potential for continuing the current trend, regardless of how weak or transitional it may be. Note that the Initial Trend is still rather low on this alert but prices did not break the uptrend line support that would have triggered the short (reversal) set up. Instead, prices bounced off the uptrend line and continued the uptrend. This is classic swing trading: capitalizing on a correction in a trend. In this case that is a pullback to support.





Currently uptrend line support waits near 1.1450 and uptrendline resistance (green) is at 1.1650.