An actual deep declining channel can now be noticed on the daily chart of the USD/CAD currency pair. It had begun creating right below the multi-year peak recorded on January 20. As an additional pattern, declining channel interfere an uptrend, which is to be extended resulting a vigorous breakout of the top border.

The diagram screenshot beneath shows the declining channel itself marked with the yellow lines. The cyan line marks to an entry level in the event of a breakout. It is positioned at 10% of the channel’s top part above the topmost border. The green line will present as my take-profit on a par and is positioned at 100% of the same value from the topmost border. I will certain my stop-loss to the bottom of the breakout bar or the bottom of the forward bar if the breakout one is mainly outside the diagram.

The USD CAD in Declining Channel Since January 2016

Mike N
Mike N

Financial Trading Systems Design Expert

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