Happy Corner: Loonie (CAD) pairs

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?

I’m a newbie asking a dumb question (again). I thought bearish divergence was price up during same period that oscillator was rising or at least level and bullish divergence was oscillator rising (or perhaps level) and price going down in same time frame. If so, is this not bullish divergence potentially?

Here is the partial results of the live trading call which i gave on thursday on USDCAD. This trade is still open.


Reasons for taking this trade?
•Previous swing low 0.9800-20 on the daily chart on 30th April 2012.
•0.9800-20 should act as resistane level once USDCAD crosses below it.
•Any rebound up to re-test 0.9800-20 should be a good signal to go short.

I took partial profits and brought my stop loss to breakeven. Hope to let it run and hit my target profit price.

Heads up! It looks like USD/CAD is not done retracing yet! I zoomed out to the longer-term time frame and found out that the former support at the .9850 minor psychological level is close to the 61.8% Fib. Stochastic still has a long way to go before reaching the overbought zone though so I’ll definitely keep an eye out for that!

Ha! It’s no wonder my USD/CAD trade isn’t moving. The .9850 handle is waaaay to strong for the Loonie bears right now! Not only is it the 38.2% Fib on the daily chart, but it’s also a former support level. Oh and have I mentioned that there’s a bearish divergence too?

How low can USD/CAD go? The long-term falling trend line on the daily chart has held once more as the pair bounced off the 38.2% Fibonacci level. However, it seems that dollar bears aren’t done yet! USD/CAD might be on its way to test its previous lows below .9700 since stochastic is still pointing down.

Don’t look now, but there’s another Loonie bullish setup on USD/CAD! This time it’s on the daily chart. A symmetrical triangle has been forming since early September, which could easily become a bearish pennant if the Loonie bulls decide that they’re not done buying the comdoll just yet. The .9700 area is a good target if you think that USD/CAD is about to fall.

The bullish pennant inside the bearish flag had a solid break out. Opportunity for a short at the tough .9880 resistance/support? Great chart happypip!

I am bearish on this pair. Considering the bearish divergence, I entered on a short trade at 0.9866.

How are you feeling about this trade ?

Hi to all,

I am trading the usdcad and I put the limit to 0.9807 where usdcad can go down? :57:

Thank you a lot :slight_smile: bye

My trade as posted in Post #144 was a success and it gained me straight 100 pips.

Thank you guys.

Fantastic trade Bijoymi! I caught a piece of it then went long at .9775 and took profit today at .9725! Yay pips!

I have now loaded up my shorts again at the familiar .9850 level. The long term bearish flag Happypip pointed out is still looking ripe for the pippin!

Hai rksingh2,

The triangle is still in favor to give some more pips. I am not shorting the pair as I am having other two trades (Short GBP/USD which is now up by 100 pips at http://forums.babypips.com/trade-journals/47465-bijoys-trading-set-ups-7.html#post409894 and pending order on EUR/AUD at http://forums.babypips.com/trade-journals/47465-bijoys-trading-set-ups-11.html#post410411 which is to be triggered.

Have a look on the Fundamentals too, crude oil is going down for the long trend and I think the flag had a breakout now anyway so it’s a useless pattern now.


Yes, that’s too bad :confused: Can’t catch them all! Still holding the shorts while .9950 holds and support at parity, SL at 1.0020.

Oil is still holding in the $90 area, but thanks to Carney’s dovish comments the CAD has a bit more to give back now. Fundamentally Canadian and North American economies are still looking good, however Carney has to take opportunities to downplay the CAD strength. So overall I’m still bullish CAD, but we may very well get some better prices to short U/C above parity.