Overview:
Three months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel.
During the past few weeks, the USD/CAD pair established a temporary consolidation zone between price levels of 1.1560 and 1.1670.
Bullish breakout above these zones allowed bulls to reach new highs around 1.1800 and 1.1850 where the upper limit of the bullish channel is roughly located.
As a conservative trader, you should know that price zone of 1.1665-1.1580 remains the nearest SUPPORT zone for the current prices. LONG positions are suggested at retesting of this price zone.
You should also note the wedge pattern being expressed around price zone of 1.1840-1.1860 where the upper limit of the depicted movement channel is located.
This pattern may indicate bearish reversal if confirmed with bearish breakdown of price zone of 1.1800-1.1780.
Trading recommendations:
As mentioned, risky traders should only look for SHORT positions around such high prices. The stop loss should be set as DAILY CLOSURE above 1.1875.
LONG positions are suggested at retesting of price zone of 1.1665-1.1580 which is a newly-established SUPPORT zone.
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