Hello traders, let’s review the 8 hour chart for USDCAD today. Currently trading in well defined range, since October 2022. Right now closing in on range lows, sonaturally the risk/reward is shifting in bulls favor towards premium prices.
Active trading range is pretty wide, almost 500 pips wide. Range lows defined by 3400 and range highs set at 3770. 3840/3940 premium prices above range highs, and 3330/3250 premium prices below range lows.
Recommended strategy for USDCAD swing trade setup: Bulls focus on buying low near premium prices, best entry near 3300 and stop loss below premium prices. TP1 bulls is +150 pips TP2 bulls is +300 pips, conservative targets based on latest price swings in USDCAD .
I beg to differ,
From a daily chart perspective, a rising channel has been broken, and the swing low support level at 1.35500 has been breached.
At the current point of analysis, the price is trading just below the weekly open and is observed to be bouncing off the 50% target projection level at 1.34100.
The current week’s high (1.35500) should serve as an immediate resistance level for short-term traders to cut losses.
The major swing high (1.38100) resistance is quite far away and may serve as a major resistance level for long-term traders with the intention of averaging down their position.
A breach of the current week’s low at 1.34100 would push the price towards the 100% target projection level at 1.32500.
