Potential Scenario in USDCAD

Trading Discussion
1

Overall, USD/CAD is trending upwards. Recently, USD/CAD bounced off the support zone of 1.26100.

The Bank of Canada (BoC) kept its monetary policy unchanged during their meeting yesterday. On the matter of COVID Omicron variant, the central bank highlighted the renewed uncertainty caused by it “could weigh on growth by compounding supply chain disruptions and reducing demand for some services”. Nonetheless, the BoC is still expecting its 2% inflation target to be sustainably achieved in the middle quarters of 2022.

The Canadian Governing Council member Gravelle will be speaking tomorrow at 1500 (GMT+8). During this time, there may be volatility in CAD.

USD/CAD’s next support zone is at 1.26100 and the next resistance zone is at 1.29000.
Look for short-term buying opportunities of USD/CAD.

USDCAD
USDCAD1234×587 43.4 KB

2

What a difference a scale makes.

Before I clicked to open the chart so that I could read the axes, this graph looked like the crypto market cap with a drop of nearly 25%. When I read the scales I realized that top to bottom is only a 2% difference, or 200 PIPs over 3 days. Daily ATR (14) is 0.0080 or 80 PIPs. So I deem this to be a trend reversal opportunity not a trend following opportunity.

I am interested to know why you think this is a reversal opportunity as opposed to a retrace of an existing long (edited) trend?
I have posted a much longer timeframe of USDCAD from my perspective of a trend following plan.

I am interested in group discussion from other members. Any takers?

image
image2274×1484 298 KB

3

Yo that was perfect. Sucks I didn’t take this trade.