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USD/CAD in Ascending Channel on H4

June 25, 2017 (Last updated on June 29, 2017) by

After falling to its June 14 low, the USD/CAD currency pair began rising slowly, forming a perfect ascending channel pattern on its four-hour chart. A bearish breakout from this pattern would imply a continuation of the previous strong downtrend of the US dollar against the loonie.

The channel is marked with the yellow borders on the image below. The cyan line is my entry trigger, which is placed at 10% of the channel’s width below the lower border. The same (but at 100% of the width) goes for the green line, which is my target trigger in case the short position is opened. I will put my stop-loss to the high of the breakout bar or to the high of the preceding bar if the breakout one will be trading mostly outside the channel. I will ignore bullish breakouts from this ascending channel. You can click on the image to see a full-size chart:

USD/CAD - Ascending Channel Pattern on 4-Hour Chart as of 2017-06-25

I detected this channel using the Channel Pattern Detector indicator and built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this USD/CAD pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2017-06-29: After triggering the entry point at 11:42 on June 27, the currency pair has rapidly proceeded to my take-profit level of 1.30851 and closed at 11:25 on June 28.

USD/CAD - Ascending Channel Pattern on 4-Hour Chart as of 2017-06-29 - Post-Exit Screenshot

If you have any questions or comments regarding this ascending channel on USD/CAD chart, please feel free to submit them via the form below.

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