Chart of the Day: USD/CAD

In keeping with yesterday’s theme about potential USD strength, the USD/CAD daily chart seems to be the closest to matching the USD/INX chart shown yesterday.


A look at the hourly chart does show a potential buying opportunity with limited risk. The USD/CAD has started to move up and pulled back off of a high. The bounce up has defined potential support with the high defining potential resistance that we can use for our entry. Traders who think the USD will continue to strengthen can buy on the break up through resistance and place their protective sell stop below support. That is a risk of about 150 pips, which means that target to take profit should be about 300 pips from entry to maintain a 1:2 risk:reward ratio.