USD/CAD Forecast: USD Continues to Pull Back Against LoonieThe US dollar has pulled back again during the trading session on Thursday against northern counterpart. The Loonie has been a bit oversold as of late, so this is not a huge surprise. The question now is whether or not this is going to be a simple correction, or is it going to be something bigger? A lot of this could come down to the oil market as per usual, but there are also other things that could move the Canadian dollar.
Keep in mind that these two economies are highly intertwined, so that is why quite often this market tends to be very difficult to trade. However, it appears to me that the pullback from the 1.30 level was very deliberate, but I do not necessarily know that it means we are changing directions again. As things stand right now, it simply looks like we are chopping along and try to butt up the necessary momentum to break out to the upside. If we can clear the 1.30 level on a daily candle, that would be a very bullish sign and could send this pair much higher. It is worth noting that we bounced from the 1.20 level, an area that has been crucial on longer-term charts. The question now is whether or not we are actually going to try to revisit that? I highly doubt it at this point.
That being said, the 50 day EMA is where I draw a line in the sand, and as long as we can stay above that I think you have to be looking for buying opportunities. It currently sits at the 1.2677 level and is rising quite rapidly due to the extreme momentum that we had seen in the market over the last several weeks. For what it is worth, oil does look a little bit tired at the moment, but with the lack of liquidity in the markets, you cannot read too much into any of these moves over the next couple of days. For me, this is all about the 1.30 handle and whether or not we can break above it. If we can, then it becomes a “buy-and-hold” type of market that I will look for opportunities to add to. I suspect that probably comes sometime in early January, perhaps after the nonfarm payroll numbers.
For me, this is all about the 1.30 handle and whether or not we can break above it.
Usdcadsell
USDCAD ANALYSIS 8HPrice has comeback to supply zone. Tested area 1.2825 and rejected at 1.29310.
If price can hold under 1.28253 then I'm looking for a sell long term to the 1.2600 level.
There could be a bounce off 1.27324 back up I'm holding with very low risk. sl above bearish candle.
The DXY has rejected 96.924 twice. last time was nov.24th. DXY is looking to test the 96.00 level or possibly lower.
USDCAD short trade idea UPDATES!!Still holding my short bias on USDCAD after been stopped at break even on Friday, we are getting a nice reaction from that 1.27300 retracement area showing that it is holding some sort of significance. At the start of the week I will be watching price and trying to get into the best opportunity I can to hopefully catch the large move to the downside.
USDCAD will be messy....The dollar cad broke uptrend structure and now we are expecting some range bound trading until a clear direction is formed. At these levels, I am looking to enter a short position.
BEAR CASE
In the next week, I am expecting a slight move upwards to retest the bottom channel line and then for price to dump to retest 1.26
BULL CASE
Though unlikely, we need to consider the case where there is one more push up to retest 1.30, if the bottom of the channel line doesn't give us the resistance that we are looking for, and serves as a support for a up move, we may enter a long trade.
USD/CAD SELL NOW...
💹USD/CAD ⏬ SELL @ 1.27693
✅TP-1# 1.26844
✅TP-2# 1.26026
⛔️SL 1.28666
📊 Trade Accuracy 80% 📊
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1.30 in sight for USDCADThe macro sentiment for the dollar is clear, we are expecting upside in 2022 and the fear is the market due to the OMNICRON strain as well as the fed's hawkish stance is accelerating this. Unless there's a macro uturn in the fed's policies, we should see price reach 1.30 some time soon.
USDCAD LONGS EDUCATIONAL 📉📉📉Its not a trading signal, i will look to long only if pric will return back into bullish orderblocks + imbalances confirmed with a HTF bullish market structure. Thats a perfect setup that i wait when i enter trades, htf structure combined with smart money concepts for entries.
What do you think ? Comment below..