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?
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.
Forex Mind Games: LIVE TRADE - SHORT USDCAD
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!
