USD/CAD’s falling channel on the 4-hour time frame is still intact and there’s a bullish divergence right on the 1.0000 major psychological mark. That’s right in line with the bottom of the channel, which means that Loonie bulls might have a tough time breaking that support level.
Lol like your turn of phrase, it was ‘quite a bummer’ for me, too. I closed 50% of the position for a profit when the market began to turn, and trailed the Stop on the remainder to BE. This was then hit. Similar story with AUD/USD and GBP/USD, which were my two other trades from last week. I made some money, but disappointing. But what can you do?! It happens, sigh.
After pausing just above the .9900 major psychological handle, it looks like USD/CAD is ready for a bounce! Those who are looking for an area to short can take a risk at parity, which is near the 50% Fib on the 4-hour chart.
This USDCAD trade looks promising. There may be a possible bounce from the support zone. I am willing to risk playing with a larger position size on this trade. As the risk to reward ratio is very favourable at 1 is to 5.
LONG USDCAD around 0.9800-20
Stop loss below 0.9780
Target profit 1.0000
Nice charting and very nice trade. I will be getting in on this one for sure.
RSI on the daily chart shows this pair as very oversold. It was under 30 only a day or two ago.
Price of oil is up too so that should help this pair hit that 0.9820 mark.
If you’re a Loonie bear, then you might like this potential bounce setup on USD/CAD. It looks like the pair is currently approaching the next support level located at the .9800 major psychological level. Do you think it’ll hold?
As I always say, if there’s one thing that USD/CAD loves to do, it’s to move sideways inside a range! Right now, it looks like the pair is forming a new range between .9895 and .9945. Note that .9895 acted as resistance earlier on, which means that it probably switched gears and will act as strong support from now on. But will the top of the range hold?
Great call on that bounce play BTW!
Big chance it will never reach 0.9800.
We didn’t get a new low last Friday, maybe 0.9842 is the bottom for now.
Anyway I’m long, target 0.9920 and longer term (few weeks) 1.0070
My guess is .9950 to .9750 range for a while. Currently I am long a small position.
Why 0.9950? 0.9800 will be hard to beat, strong support.
Yes .98 may in fact hold and that is why I have a current small long. If it goes to .98 I will add another postion. If it goes to .975 I will add again. Will be looking at the daily RSI and other fundamental factors at that time. I am guessing that we may have a repeat of the range from feb 2012 to May 2012 (2 cent range from about .985 to 1.005). That earlier range ran about 1 cent higher then the current range so far so i suspect similiarily that the new lows from this current range will be about .975 (and maybe enven .97) to .995 before heading to 1.03.
After testing the .9850 handle twice last month, it looks like the Loonie bulls are ready for another round with the pair forming a descending triangle on the 1-hour chart. Will it finally break below .9850 or will the Loonie bears step in and force an upside breakout?
I think it’s going to hold and begin to consolidate within the same range back in March…0.9980 - 0.9850…
Is there no end to the Loonie’s rallies? Last time I checked, USD/CAD already dipped to a new yearly low! The pair just broke below the long-term support around .9850 and looks ready to drop further as it formed another bearish pennant on the 4-hour time frame. Be careful while stochastic is in the overbought region though.
Sold my long small position for a small profit. Bought again at .9780. Tempted to buy another long small. Tough to do when that pennant pattern is forming.
There is bullish divergance forming on the 1 hr macd
That .9720 area held as support though, with double bottoms on the 1h time frame. Gonna trade this during the FOMC?
Thanks for pointing that out, mate! Might play out if the FOMC decides against QE3 again. Gonna trade this one? Lemme know how it turns out!
If you think that the Loonie bulls are just biding their time, then this setup is for you. USD/CAD is forming a potential bearish divergence on the 4-hour chart and is supported by a Stochastic signal that looks like it’s about to go down. Will the top weekly ATR in our Comdoll Trading Kit serve as a strong resistance this week?
