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U.S. Dollar / Canadian Dollar

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USDCAD trade ideas

The Best Level to short USDCAD TP +250/+500 pips🔸Hello traders, let's review the daily chart for USDCAD today. Trading near premium prices of the multiyear range, established in 2023. Currently risk/reward is shifting in bears favor, so it's recommended to look for sell side setups in this market. 🔸Range highs set at 3800, premium prices overhead at 3880 3960 range lows set at 3300 and premium prices below at 3140 3240 current bid is 3885. 🔸Recommended strategy for USDCAD traders: focus on short selling any rips/rallies near market price. price is currently trading near premium levels and is maxed out already, limited upside. TP1 bears +250 TP2 bears +500 pips keep in mind this is a swing trade setup so naturally will take more time to complete / hit both targets. good luck traders! 🎁Please hit the like button and 🎁Leave a comment to support our team! RISK DISCLAIMER: Trading Futures , Forex, CFDs and Stocks involves a risk of loss. Please consider carefully if such trading is appropriate for you. Past performance is not indicative of future results. Always limit your leverage and use tight stop loss.
Short
by ProjectSyndicate
19
The Canadian Dollar: What Every Forex Trader Needs To KnowThe Canadian Dollar: What Every Forex Trader Needs To Know Among the major currencies covering the largest part of forex trading volume is the Canadian dollar (CAD), colloquially known as the "Loonie" due to the image of a loon bird on the back of the C$1 coin. This article aims to provide a comprehensive understanding of the CAD, a brief overview of its historical journey, and the factors driving it in the forex market today. Understanding the Canadian Dollar Over the years, the CAD has weathered fluctuations and policy shifts, impacting not only its value but also its influence in the world of finance. Originally, Canada used the British pound as its official currency, but it was gradually replaced by the Canadian dollar, which has been the country’s official currency since 1858. Following the establishment of the Bretton Woods system, Canada allowed its currency to fluctuate freely between 1950 and 1962, a period that culminated in a significant devaluation event. Subsequently, Canada adopted a fixed exchange rate until 1970, at which point mounting inflation pressures prompted the government to return to a floating currency system. Canadian Economy Canada boasts a stable and resource-rich economy that is also well diversified, yet when examining Canada's economic landscape, it's crucial to take into account its significant involvement in commodities. Canada is a significant producer and exporter of petroleum, minerals, wood products, and grains. Canadian Dollar Exchange Rate Catalysts Various factors influence the value of the Loonie in the forex market. Here, we will explore some of the primary catalysts. Monetary Policy Decisions Impact CAD Predictions Interest rate announcements by the Bank of Canada usually take place eight times a year on predetermined dates. Higher interest rates often attract foreign investment in the economy, leading to an appreciation of the CAD's value. Following two consecutive pauses, the Bank of Canada surprisingly increased its overnight lending rate by 25 basis points on June 7th, 2023, reaching 4.75 per cent. This decision was primarily prompted by a rise in inflation to 4.4 per cent, marking the first uptick in 10 months. Notably, the EUR/CAD exchange rate exhibited a pronounced reaction to this event. Economic Data Key economic indicators encompass the publication of GDP figures, retail sales data, industrial production statistics, inflation rates, trade balances, and jobs data. These reports follow established schedules; for example, you can use FXOpen’s economic calendar to track major events. Improvements in that data can be bullish for CAD, while a deterioration could exert negative pressure on the currency. In September, Canada’s GDP for the second quarter of 2023 signalled stalling economic activity, remaining unchanged from the first quarter against expectations. Unsurprisingly, there was a significant bullish market reaction in the USD/CAD exchange rate. The Impact of Oil on Canadian Dollar Trading Canada is one of the world's largest oil producers, and its currency is closely tied to the price of crude oil. A rise in oil prices typically boosts the Canadian dollar. Conversely, falling oil prices can weaken the currency. The oil price war in March 2020 between Saudi Arabia and Russia had a direct and adverse impact on the Loonie. The CAD depreciated due to the country's significant reliance on oil exports and the reduced revenues resulting from the sharp drop in oil prices. Unique Factors to Consider in a Canadian Dollar Forecast In addition to the aforementioned catalysts, there are unique factors that forex traders consider when analysing the Canadian dollar buying rate today. Proximity to the United States Proximity to the United States is a defining factor in the performance of the CAD, which is notably influenced by the intricate economic ties with that country. These ties extend beyond trade to factors such as cross-border investments and shared financial markets. Positive developments in the US, such as robust economic growth or shifts in monetary policy, can elevate demand for Canadian exports, thereby potentially strengthening the CAD. Conversely, economic challenges in the US may disrupt trade flows between the two nations, leading to a potential weakening of the CAD. Commodity Prices and the Canadian Dollar Trend Apart from oil, Canada exports various other commodities, including metals and agricultural products. Fluctuations in global commodity prices can influence the CAD, as they impact Canada's export revenues and, respectively, the performance of the Canadian dollar. When commodity prices are on the upswing, there tends to be a surge of incoming capital, which positively affects CAD exchange rates. If you're eager to find new opportunities, you can visit FXOpen’s free TickTrader platform. Trade Relations Canada is a major player in global trade, having significant partnerships. News or events related to these agreements can significantly influence the CAD's performance. - USMCA (formerly NAFTA): The United States-Mexico-Canada Agreement is pivotal for Canada, as a significant portion of its exports are destined for the United States. Any changes or developments in USMCA can impact the CAD's value. - European Union: Canada has a Comprehensive Economic and Trade Agreement (CETA) with the European Union (EU). This trade deal promotes exports to EU countries and fosters economic cooperation. - Asia-Pacific: Canada's trade relations extend to Asia-Pacific nations, where it actively trades with countries like China and Japan. The imposition of tariffs or the eruption of trade tensions can exert substantial pressure on the CAD. Tariffs can lead to reduced exports, affecting Canada's trade balance and potentially weakening the currency. Conversely, the resolution of trade disputes can lead to a stronger CAD. Geopolitical Stability Considering Canada's relatively robust economic position, the nation boasts a relatively elevated interest rate compared to other developed economies. Canada has also earned recognition for its prudent fiscal management, striking a harmonious balance between a government-influenced economy and a more laissez-faire approach. This characteristic becomes particularly relevant during times of worldwide economic instability. While not a reserve currency like the US dollar, the Canadian dollar is relatively stable. Takeaway To navigate the dynamic world of forex trading effectively, understanding the factors influencing the Canadian dollar's value is paramount. Among the unique features of the Loonie are its close ties to the US economy, reliance on commodities, and unique geopolitical position. Already have an idea of how to trade the CAD’s fluctuations? Open an FXOpen account and expand your journey right away. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
6
USDCAD - 4hrs ( Sell Trade Target Range 120 PIP ) 🟢 Pair Name :USD/CAD Time Frame : 4hrs Chart / Close Scale Type : Large Scale ------ spreading knowledge among us and to clarify the most importan+t points of entry, exit and entry with more than 5 reasons We seek to spread understanding rather than make money 🟢 Key Technical / Direction ( Short ) ——————————— Bearish Break 1.38600 Area Reasons - Major Turn level - Visible Range lvn - CHannel Break - Choch - Fixed Range Hvn - Year High / P Bullish Reversal 1.37500 Area Reasons - Major Turn level - Visible Range Hvn - Trend Line - Pattern Target - choch
Short
by GoldenEngine
2
POTENTIAL SHORT OPPORTUNITY USDCADHello everybody hope you are doing awesome! Just wanted to come on here and give a potential swing trading opportunity I see on the US DOLLAR VS CANADIAN DOLLAR (USDCAD). So let's dive in! Okay so let me give a breakdown for each timeframe of what I am seeing that led to my bias of the next potential move on USDCAD being to the downside for this upcoming week. Weekly Timeframe 1. Price is overbought coming into a past supply/resistance zone. Price last week left a downside wick (hanging man) formation which I believe will be filled 2. There is a nice demand zone and bullish trendline lining up to the downside (ALSO fib retracement 78.6% confluence) Daily Timeframe 1. Price is slowing down 2. Extreme bearish divergence on the daily timeframe 3. RSI is in overbought conditions (which you can see what has happened in the past) 4H Timeframe 1. Watching the buyer momentum making sure it isn't too strong (dominant) 2. Extreme bearish divergence as well 3. Watching for a run of weekly highs and maybe double divergence/run of highs ALRIGHT! Hope that made sense! I definitely see a good amount of potential confluence here on this setup so let's see how price forms this week and see if it plays out to the downside! If you enjoyed the analysis as always please boost this post and follow my page for more analysis! Cheers!
Short
by JosePips
5
USDCAD Trading IdeaBased on Simple Technical Analysis ( Trendline + Support & Resistance ) Risk Disclaimer: Please be advised that I am not telling anyone how to spend or invest their money. Take all of my analysis as my own opinion, as entertainment, and at your own risk. I assume no responsibility or liability for any errors or omissions in the content of this page, and they are for educational purposes only. Any action you take on the information in this analysis is strictly at your own risk. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. Good luck :-)
Short
by ShahedZare
5
USD/CAD 4H Bearish Double Top with RSI Divergence Trade SetupUSD/CAD 4-hour chart is forming a bearish double top pattern near a resistance zone, signaling a potential reversal. The RSI shows bearish divergence, with the price making higher highs while RSI trends lower, indicating weakening upward momentum. This setup suggests that a bearish move is likely if the price breaks below the key support level at 1.38138, which is the designated sell entry level in the plan. The stop loss is set above the double top, at 1.39624, to protect against a breakout above resistance. For targets, Take Profit Level 1 is set at 1.36665, while Take Profit Level 2 is positioned at 1.35443, aligning with lower support levels that could serve as points for a potential reversal or pause in the downtrend. The plan projects the double top breakdown using a red line labeled "Projection of DT," indicating the estimated move downward if the pattern completes. This trade strategy utilizes confluence between price action, RSI divergence, and a clear breakdown structure to establish a high-probability short trade setup.
Short
by Naqash16046
7
Price can drop down to 1.378 , but..theres is FOMC meeting tonigh, the cut is expected so lets see how it will affect the price. There can be some short term spike up, but I think Dollar needs pullback You are very welcome to comment with your thoughts, share your charts or questions about COT or how I came to this setup. Just comment below, I like any constructive discussion. If we get the confirmation, I will be looking to position myself with my students and followers as highlighted on the chart. Accumulation / Manipulation / Distribution - No liquidity raid = No trade - Never buy high and never sell low “Adapt what is useful, reject what is useless, and add what is specifically your own.” Dave FX Hunter ⚔
Short
by Dave-Hunter
2
USDCAD on its way to retest high?related monthly chart time in UTC+8 three white soldiers on 4 hr CAD unemployment rate soon stoch rsi hidden bullish divergence from 25 Sept 2024 -> trend continuation current fundamentals still support USD and CAD unlikely to strengthen retest of monthly high (either break or reverse monthly high to be retested) trump reelected, uncertainties surrounding his policies make managed funds unlikely to bet on a high beta commodity currency like CAD for now where there are so many other alternatives. retail are HUGE USDCAD shorters, ain't no free money like that! yesterday was unable to create lower low on daily. price currently bounced from various previous major daily swing highs, one can possibly say daily resistance retested and turned support and USDCAD on its way to retest monthly resistance bounced from channel dated back from 25 sept 2024 swing low, currently at bottom range of channel, good for longs for a range trade Friday as major news begin to settle and investors reassess upcoming risks successful break through of multiple vwap resistance with momentum at asian sesh etc What yall think?
Long
by FableHart
3