Sorry for the delay in updating the USD/CAD trend analysis! As you can see, the channel trend is clearly broken though now and the question is what is next for the pair, does it find new support and go higher, or is a counter-trend forming?
On Wednesday, oil prices shot upwards, which led to a selloff in USD/CAD. For most of that day, the 1.3600 level was the basis of resistance, and USD/CAD ended the day 36 pips lower. However, the selloff was short-lived, as by Thursday, the previous session's high was reached. It is also of note that the price opened below the 1.3600 psychological resistance and was able to close above it, on Thursday. Friday actually found support at the 1.3600 level. I think this is signalling that a new support is shaping up, and could be a buying opportunity in the expectation that the trend continues moving upwards. And this is all in the context that USD/CAD has been trading well above its 9-day moving average, even with the selloff on Wednesday. While I think it might regress downwards in terms of the rate of upwards trending, USD/CAD is still clearly in an uptrend.
I would look to open a USD/CAD position at 1.3638 with a stop loss at 1.3595 and setting the first half of take profit at 1.3690.
Please let me know whatever feedback or comments you have!
On Wednesday, oil prices shot upwards, which led to a selloff in USD/CAD. For most of that day, the 1.3600 level was the basis of resistance, and USD/CAD ended the day 36 pips lower. However, the selloff was short-lived, as by Thursday, the previous session's high was reached. It is also of note that the price opened below the 1.3600 psychological resistance and was able to close above it, on Thursday. Friday actually found support at the 1.3600 level. I think this is signalling that a new support is shaping up, and could be a buying opportunity in the expectation that the trend continues moving upwards. And this is all in the context that USD/CAD has been trading well above its 9-day moving average, even with the selloff on Wednesday. While I think it might regress downwards in terms of the rate of upwards trending, USD/CAD is still clearly in an uptrend.
I would look to open a USD/CAD position at 1.3638 with a stop loss at 1.3595 and setting the first half of take profit at 1.3690.
Please let me know whatever feedback or comments you have!
