Detailed Trade Plan for USDCAD
Starting with the weekly view, this pair is maintaining it's bullish momentum as it looks to test the 1.40 area for the next level of possible resistance. On the other hand, RSI is giving us some early indications that this pair might be getting exhausted as it attempted to break and hold below 70.
Let's now jump down to the daily timeframe for some better clues.
== DAILY TIMEFRAME ==
Friday closed quite aggressively to the upside hovering just below the 1.39 handle. However, I find this pair quite interesting because of the unusual extended price action deviation we have from the 200SMA along with the divergence with RSI . If I were to guess, I'd say this pair is likely to correct in the days ahead based on the technicals currently presented. Let's now take a look at the 4 hour.
== 4 HR TIMEFRAME ==
As illustrated on the chart with the ascending rays, price action is likely to maintain this trajectory for the time being. However, my intuition is telling me that a pullback towards 1.38 has a good chance knowing the fact we had strong rejection off the 1. 40 zone which here I point out as a possible fakeout.
If on the other hand I'm wrong about my "fakeout" analysis, that would mean this pair very well could climb as high as 1.41 in the days ahead. For those like that scalping such as myself, let's take an even closer look at the 1 hour.
== 1 HR TIMEFRAME ==
Most notably about the 1hr chart is that impulse "B" is greater than impulse "A" indicating strong bullish momentum still remains for further upside potential.
Knowing the fact we had a strong rejection following a test of just shy of the 1. 40 handle, if price action is able to climb above that level, I would expect even further upside in the days ahead.
On the downside, before we see a possible impulse "C", I would expect at least a retracement back down towards the previous range of consolidation we had last week heading in the CPI report. This would mean a potential pullback towards 1.3830 - 1.3800. If we break below the 1.38 handle, I would be confident that an impulse "C" as illustrated on the chart won't be as likely.
The 1 hour chart did close out on Friday with a doji candle closing below the previous low. Lastly, let's take a look at the 15 min timeframe for my sniper friends.
== 15 MIN TIMEFRAME ==
From the most recent bearish impulse to the downside, USDCAD managed to recover those loses and closed the day above the 61.8% retracement level.
RSI is showing signs of weakness by providing some divergence with price action.
Heading into the weekend close on Friday, it appears price action managed to break below the ascending mini channel formation.
== IN SUMMARY ==
This pair still has some further upside potential to at least the 1.40 handle but I would expect to see some selling pressure around that area. Smaller timeframes are giving evidence that sellers are present so if you are looking to go long, be cautious for some rapid downswings.
Let's now jump down to the daily timeframe for some better clues.
== DAILY TIMEFRAME ==
Friday closed quite aggressively to the upside hovering just below the 1.39 handle. However, I find this pair quite interesting because of the unusual extended price action deviation we have from the 200SMA along with the divergence with RSI . If I were to guess, I'd say this pair is likely to correct in the days ahead based on the technicals currently presented. Let's now take a look at the 4 hour.
== 4 HR TIMEFRAME ==
As illustrated on the chart with the ascending rays, price action is likely to maintain this trajectory for the time being. However, my intuition is telling me that a pullback towards 1.38 has a good chance knowing the fact we had strong rejection off the 1. 40 zone which here I point out as a possible fakeout.
If on the other hand I'm wrong about my "fakeout" analysis, that would mean this pair very well could climb as high as 1.41 in the days ahead. For those like that scalping such as myself, let's take an even closer look at the 1 hour.
== 1 HR TIMEFRAME ==
Most notably about the 1hr chart is that impulse "B" is greater than impulse "A" indicating strong bullish momentum still remains for further upside potential.
Knowing the fact we had a strong rejection following a test of just shy of the 1. 40 handle, if price action is able to climb above that level, I would expect even further upside in the days ahead.
On the downside, before we see a possible impulse "C", I would expect at least a retracement back down towards the previous range of consolidation we had last week heading in the CPI report. This would mean a potential pullback towards 1.3830 - 1.3800. If we break below the 1.38 handle, I would be confident that an impulse "C" as illustrated on the chart won't be as likely.
The 1 hour chart did close out on Friday with a doji candle closing below the previous low. Lastly, let's take a look at the 15 min timeframe for my sniper friends.
== 15 MIN TIMEFRAME ==
From the most recent bearish impulse to the downside, USDCAD managed to recover those loses and closed the day above the 61.8% retracement level.
RSI is showing signs of weakness by providing some divergence with price action.
Heading into the weekend close on Friday, it appears price action managed to break below the ascending mini channel formation.
== IN SUMMARY ==
This pair still has some further upside potential to at least the 1.40 handle but I would expect to see some selling pressure around that area. Smaller timeframes are giving evidence that sellers are present so if you are looking to go long, be cautious for some rapid downswings.
I manage forex accounts for HNWI and sophisticated investors.
Managed Forex Accounts
➡️ manage.forex
Track Record
➡️ tinyurl.com/y67rnwrd
LinkedIN
➡️ linkedin.com/in/forexdaytrader
Managed Forex Accounts
➡️ manage.forex
Track Record
➡️ tinyurl.com/y67rnwrd
➡️ linkedin.com/in/forexdaytrader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.