Watch for USD/CAD Consolidation Breakout Soon

The USD/CAD has bounced off the bottom of a larger descending wedge pattern.

Following the bounce, the price has consolidated on the daily chart for six daily sessions (so far).

Given the close proximity to support, an upside breakout of the consolidation likely has further to run than a downside breakout.

If the upside breakout occurs, which is a move above 1.3080, a stop loss can be placed just below 1.3026.

An upside target is placed at the top of the wedge pattern, near 1.3250.

This provides for a 3:1 reward:risk trade.

No trade yet, waiting for a breakout.

For the full write-up and other things to consider, see https://www.thestreet.com/forex/forex-trade-ideas/watch-for-usd-cad-consolidation-breakout-soon-abZaN5jdNk6bb-mzrqPIBQ