The USDCAD pair could be poised for a 100-pip bullish move based on current technical and fundamental factors. Here’s the analysis:
Key Reasons for a Bullish Outlook:
Technical Setup:
Support Holding: If USDCAD is bouncing off a key support level (e.g., 1.3500 or 1.3600), a rebound toward 1.3700-1.3750 (+100 pips) is possible.
RSI/Oversold Bounce: If the RSI was near 30 (oversold), a reversal could trigger a short-term rally.
Break of a Downtrend Line: A breakout above a descending trendline could signal bullish momentum.
Fundamental Drivers:
Stronger USD: If the Fed maintains a hawkish stance (delaying rate cuts), the USD could strengthen.
Weaker CAD: If oil prices decline (CAD is oil-linked) or Canadian economic data disappoints, USDCAD could rise.
Price Action & Key Levels:
Entry Zone: 1.3600-1.3650 (if holding as support).
Target: 1.3700-1.3750 (+100 pips).
Stop Loss: Below 1.3550 (if support breaks).
Trade Plan:
Buy Zone: 1.3600-1.3650
Take Profit: 1.3700-1.3750 (+100 pips)
Stop Loss: 1.3550 (50-pip risk)
Risk-Reward Ratio: 1:2 (favorable).
Caution:
Key Reasons for a Bullish Outlook:
Technical Setup:
Support Holding: If USDCAD is bouncing off a key support level (e.g., 1.3500 or 1.3600), a rebound toward 1.3700-1.3750 (+100 pips) is possible.
RSI/Oversold Bounce: If the RSI was near 30 (oversold), a reversal could trigger a short-term rally.
Break of a Downtrend Line: A breakout above a descending trendline could signal bullish momentum.
Fundamental Drivers:
Stronger USD: If the Fed maintains a hawkish stance (delaying rate cuts), the USD could strengthen.
Weaker CAD: If oil prices decline (CAD is oil-linked) or Canadian economic data disappoints, USDCAD could rise.
Price Action & Key Levels:
Entry Zone: 1.3600-1.3650 (if holding as support).
Target: 1.3700-1.3750 (+100 pips).
Stop Loss: Below 1.3550 (if support breaks).
Trade Plan:
Buy Zone: 1.3600-1.3650
Take Profit: 1.3700-1.3750 (+100 pips)
Stop Loss: 1.3550 (50-pip risk)
Risk-Reward Ratio: 1:2 (favorable).
Caution:
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.
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.