Now here’s a potential retracement play on USD/CAD. As you can see from the chart, the pair is still moving inside a rising channel on its 4-hour time frame but it appears to be pulling back after finding resistance at the top. The pair could retrace until the 38.2% to 50% Fibs, which are in line with the bottom of the channel. Set your stops below the channel or the 61.8% Fib if you’re thinking of going long.
I am expecting a potential support around 0.9900 area.
Eep, do you think it’s breaking now though? Next support might be at .9850…
Not sure… May be a false break out
Expecting uptrend to resume. Will go long on a close of 4 hour candle above 0.9900
That 50.0% Fib level was like a trampoline!
Big bullish daily candle… what’s the plan? I’m waiting with a short at parity (which just so happens to be the 200 day SMA) with a tight stop at 1.0030. Simple R:R play, even though I believe the sentiment is quickly moving toward USD strength as the fiscal cliff talk has no more distractions.
Since Stochastic is in the middle area, I’m having trouble seeing a direction for the Loonie. On the one hand parity is still holding as resistance. On the other hand, the bullish pennant on the 4-hour chart is also looking good for a breakout trade. I’ll probably wait for fundamental news before I pick a direction for this pair.
Is USD/CAD’s rally over? On its daily chart, it appears as though the rally is losing steam as the pair made a bearish divergence right on the 50% Fibonacci retracement level. The divergence seems to be playing out as stochastic is currently crawling out of the overbought zone. Do you think it’s safe to jump in? Parity seems to be holding as resistance, too!
Okay so maybe I lost my last USD/CAD uptrend trade. But maybe I was just looking at the wrong levels! If you think that the Loonie is about to weaken, wait for possible buy levels near the trend line and the .9900 major level. Oh, and check out the almost oversold Stochastic signal!
Seeing a long opportunity on USDCAD
Daily Chart
- Bullish Divergence
- Price resting on rising trend line
- Price is in line with previous resistance
- Stochastic oversold.
What you think guys ???
Just as Big Pippin mentioned in today’s Chart Art, USD/CAD has been moving sideways inside a tight 35-pip range as it found support at .9915 and resistance just a bit above .9950. At the same time, stochastic is pointing down from the overbought region, suggesting that a selloff could be in play. This could work out for a quick day trade!
Hi,
I am only a newbie to this. I want to share my thoughts to see, if this is right or not…
I have short Bias on a long term, because
- cross down SMA
- MACD cross down (Divergence latest two tops)
- Stochastic above 20,n not oversold (Divergence latest two tops)
I better have to wait for another confirmation, right? Such as a bearish candle closes below Support 0.99?
Can it drive down to the Low one year ago?
TP 0,95
SL 1,005
Thank in advance to comment my weird thoughts.
Regards,
Jensen
Here’s one for the Loonie bears! After dropping below the .9900 handle last week, USD/CAD looks like it’s consolidating just above the .9850 handle. Okay, I still have my short USD/CAD trade ready, but hey, we can’t discount that a falling wedge sometimes signals a reversal, right?
Boy, does USD/CAD sure love to range! The pair is currently moving sideways between the .9830 support and .9880 resistance. Right now, the pair is testing the bottom while stochastic just reached the oversold mark. Does this mean that a rally back to .9880 is in the cards?
Those who regularly read the Comdoll Trading Kit know how much I love pointing out USD/CAD’s strong reaction to the .9850 handle. This time around the level is still intact as a support despite the number of attempts to break it last December. But does this mean that USD/CAD is on its way up? Watch this one, folks!
Don’t look now but there’s a bullish divergence forming on USD/CAD’s daily chart! I’m seeing a few indecision candles on the support level too, which means that it could still be a toss up between the bulls and the bears at this point. I’d probably wait for stochastic to cross up before going long. How about you?
Hey Dol, Happy New Year.
I like what you are showing on the USDCAD. I just closed a short from a couple of months ago (carry trader these days). Seems like we will see a little retracement as the comdols wallow through. Hope to jump back in once we get a retrace on gold and perhaps the debt ceiling becomes an issue.
Happy New Year, foricks!
I hope you got to profit from the recent dollar strength! What levels are you looking at for a retracement trade? 