USD/CAD at heavy support and ready for the next bear rally

Orlando Gutierrez Learn 2 Trade

It's undeniable that the USDCAD is under heavy pressure and that the CAD is really enjoying the latest Oil rally. Add all of that to the USD bear market and we have a slam dunk short in the USDCAD.

You need to understand that this articles does not induce a bullish bias, at all, but we might start a bear rally from these lows giving us the opportunity to sell higher. So heads up!

If in fact the USDCAD rallies from these lows it would break with the immediate bearish structure fueling a momo rally to our sell zones.

Should this happen we need to keep our eyes on the 1.31 level which is a BIG zone of resistance dating back to October 2018. But the real sell zone in my eyes is the full previous support at the 1.31 level which would give us a awesome risk to reward ratio for the next bear leg.

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Author

Orlando Gutierrez

Learn 2 Trade

Orlando has been involved in the financial markets for about 10 years. His focus is Global Macro and he is a strong believer that the best way to trade the currency markets is focusing on the big picture and holding on to big macro trends.

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