On the above chart we are seeing a nice trading formation for the USDCAD (Daily chart).
Since February this cross has been in an uptrend however we are now also noticing a downward channel which has been going on since late June. Although this short descending channel has broken the previous longer trend line I think there is here an opportunity to go long. The reason for this is that the price is the level of 1.29/1.287 which can be considered a new level of support.
Furthermore, should this be broken, the price would be very close to the 200 day moving average which is a very strong level of support.
Another important bullish sign is that both RSI but more importantly the stochastic indicators are showing oversold signals!
I am thinking that in this case we should go long at the support levels of 1.29 and place the first target to take the initial profits at around 1.30.
What do you think?