USD/CAD has recently reached an area of overhead resistance where we have previously seen price turn.
We can also see that there is hidden bearish divergence forming on the MACD which I am using as the basis for taking this trade as it tells me that the market is losing momentum - once the MACD crossover occurs I will entering the trade.
We can also see that there is hidden bearish divergence forming on the MACD which I am using as the basis for taking this trade as it tells me that the market is losing momentum - once the MACD crossover occurs I will entering the trade.
Although USD/CAD is currently in an area of overhead resistance and there is an overhead trend line which passes through the zone, which would normally provide me with enough confluence to open a position, the fundamentals do not yet favour this trade.
USD continues to outperform its G10 counterparts, whilst the Canadian dollar, despite strong data last week, is still under threat from faltering oil prices - it is because of these fundamental weaknesses that I will wait for a strong signal before entering this trade