USD/CAD - Consolidation Opportunities
Greetings Traders!
Here's some thoughts of USD/CAD:
Since USD/CAD December High at 1.29570, price has been falling all the way to 1.27000. From the December High,
price has created consistent Lower Highs and is expected to keep falling to the next Support Zone where new
Trading Opportunities can be executed.
Here's the two possibilities I'm thinking of that could happen at that Support Zone:
1. Price Rejects the Support Zone and Reverses to go Bullish back up. This could mean that it goes
back up but won't go all the way to the Resistence Zone, considering that there's a Trendline that
Price so far has respected. I would probably get out of the Trade at that Trendline if price doesn't
Break. But if it does Break, then I would most likely have my next take profit at the Resistence Zone
above.
2. Price Breaks through Support Zone but will Re-Test that area. If the Re-Test turns out to be Bullish
and breaks through the area again, then I would go back to my first strategy again and looking for
new entries to buy. However, if Price doesn't break the area at Re-Test, then that would be my entry for
a sell.
Quick tip: Always wait at a Key Area to see what price will be doing.
It may Reverse or it may go through, but don't assume something. Look
at what actually happens and Trade after that.
Looking at the DXY chart (U.S Dollar Currency Index), the U.S Dollar has consistently fallen after Biden's Installation.
Considering the Federal Open Market Committee (FOMC) interest rate decision, means that it may keep
the exchange rate under pressure, as the Central Bank looks to be in no rush to scale back its emergency measures.
Hopefully this gave you a better understanding of the current USD/CAD situation.
Good luck with your trading & I wish you a continued good day!
Here's some thoughts of USD/CAD:
Since USD/CAD December High at 1.29570, price has been falling all the way to 1.27000. From the December High,
price has created consistent Lower Highs and is expected to keep falling to the next Support Zone where new
Trading Opportunities can be executed.
Here's the two possibilities I'm thinking of that could happen at that Support Zone:
1. Price Rejects the Support Zone and Reverses to go Bullish back up. This could mean that it goes
back up but won't go all the way to the Resistence Zone, considering that there's a Trendline that
Price so far has respected. I would probably get out of the Trade at that Trendline if price doesn't
Break. But if it does Break, then I would most likely have my next take profit at the Resistence Zone
above.
2. Price Breaks through Support Zone but will Re-Test that area. If the Re-Test turns out to be Bullish
and breaks through the area again, then I would go back to my first strategy again and looking for
new entries to buy. However, if Price doesn't break the area at Re-Test, then that would be my entry for
a sell.
Quick tip: Always wait at a Key Area to see what price will be doing.
It may Reverse or it may go through, but don't assume something. Look
at what actually happens and Trade after that.
Looking at the DXY chart (U.S Dollar Currency Index), the U.S Dollar has consistently fallen after Biden's Installation.
Considering the Federal Open Market Committee (FOMC) interest rate decision, means that it may keep
the exchange rate under pressure, as the Central Bank looks to be in no rush to scale back its emergency measures.
Hopefully this gave you a better understanding of the current USD/CAD situation.
Good luck with your trading & I wish you a continued good day!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.