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.
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
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