USDCAD, 240 min
USDCAD has been moving lower in recent days while the WTI crude has rallied. Now the pair is oversold and therefore vulnerable to contra trend moves. Stochastics is well below the oversold threshold in the daily chart and USDCAD has moved below the lower Bollinger bands. Crude oil is looking a bit weak today and could incite a rally in the inversely correlated USDCAD. The intraday price action indicates that the markets are indeed trying to move USDCAD higher from the current levels. How far the market then should move before we could consider shorting it? I’m eying an area between the 50% and 61.8% Fibonacci levels that coincides with a line-on-close low (at 1.2896) from 31st of March. There is another potential low at 1.2853 but due to a support being fairly near to this level I prefer to take action near the 1.2896 low.
I’m therefore looking for sell signals inside my 1.2880 – 1.2910 sell area with Target 1 (T1) at 1.2780 -1.2809 and Target 2 (T2) at 1.2728-1.2750. Only trade based on my analysis and trade ideas if you agree with the analysis and if are (after substantial testing) confident that you can assume the risk. Should you need further training on trading and risk management please attend my free webinars. I’d love to help you become more confident in your analysis and trading.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.