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U.S. Dollar / Canadian Dollar

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USDCAD trade ideas

Here is Rubik TradeWelcome and follow us! Day Trading vs. Swing Trading: An Overview Active traders often group themselves into two camps: day traders or swing traders. Both seek to profit from short-term stock movements as opposed to holding securities for long-term growth. The primary difference in the trading strategies is that day traders trade many stocks during a day, while swing traders trade many stocks over a longer time frame, typically two days to a few weeks. Here are the pros and cons of day trading vs. swing trading. Advantages of Day Trading Day trading is unlike many other styles of investing. Know for its fast pace and adrenaline-inducing approach, not all investors are suited for this approach to financial markets. However, day trading is arguable more than the pursue of profits: it is a lifestyle of pitting your wits against the market and living in a thrilling, high-risk environment. Day traders have the opportunity to work independently. Instead of reporting to a firm or following trading direction from a company, any investor with enough personal capital can trade when they want, working as flexible as a schedule as global markets will allow.
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by RubikTrade
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Challenges Ahead for USD/CAD Bulls Last night, the Bank of Canada decided to raise its interest rate by 25 basis points, bringing it to 4.75%. This move came after a pause in the tightening campaign during the two previous meetings. As a result, borrowing costs reached a level not seen in 22 years. Because most of the market, approximately 60%, expected interest rates to remain unchanged, the Canadian dollar (CAD) strengthened against the US dollar (USD) following the news. The USD experienced a decrease of 0.23% against the CAD. The initial reaction in the USD/CAD exchange rate showed an 80-pip drop, bottoming out at 1.3320. However, the possibility of an additional rate increase by the Federal Reserve in July likely limited the losses. The upcoming release of US inflation data next week, coinciding with the Federal Open Market Committee (FOMC) meeting, may provide limited insights into the validity of this possibility. If there are any further upward movements, reaching the area around 1.3400 could present a challenge for those expecting gains. This is because the 50-day, 100-day, and 200-day moving averages (MAs) on the 30-minute chart are all moving in their own lanes, indicating that the short-term price won't be fighting the long-term downtrend just yet. The April 14 low of 1.3300 and the aforementioned 1.3320 could be key if the pairs move lower.
by BlackBull_Markets
USDCAD portrays bearish consolidation on BoC DayUSDCAD remains unimpressive after breaking a seven-week-old horizontal support zone the previous day. That said, the RSI (14) rebounds from oversold territory and hence lures the buyers. However, a clear upside break of the support-turned-resistance area surrounding 1.3410, backed by the Bank of Canada’s (BoC) hawkish tone, becomes necessary to convince buyers. Even so, the 200-SMA hurdle of near 1.3520 and a three-week-old resistance area surrounding 1.3565-70 can check the upside momentum before directing it to the previous monthly peak of around 1.3655 and then to April’s top near 1.3670. On the flip side, BoC is expected to keep the benchmark rates unchanged and hence a dovish tone or a signal to cut rates in futures would be enough to convince USDCAD bears. In that case, an upward-sloping support line from mid-April, close to 1.3350 by the press time, appears the key support for the pair sellers to watch during the quote’s further weakness. Should the Loonie pair sellers manage to keep the reins past 1.3350, the odds of witnessing a downward trajectory towards the yearly low marked in January around 1.3260 can’t be ruled out. To sum up, USDCAD is likely to recover but the upside hinges on how well the BoC can defend hawks despite keeping the monetary policy unchanged.
by MTradingGlobal
USDCAD Reacts to CPI & Debt Ceiling WoesUSDCAD Reacts to CPI & Debt Ceiling Woes Two big events affecting the USD/CAD pair include the CPI reading from Canada this week as well as the ongoing debt ceiling crisis in the US. In April, the monthly Canadian headline CPI surged by 0.7%, resulting in an annual rate of 4.4% compared to the previous 4.3%. This increase exceeded the consensus estimates by three-tenths of a percent in both instances. Consequently, the USD/CAD experienced a 0.4% decrease, reaching 1.3404, before rebounding to a high of 1.3535 USD/CAD has now also breached its 200-day simple moving average on the downside, closing below it to reinforce the bearish signal. Strengthening this assertion is that the Bank of Canada had recently put a halt to its tightening campaign, having raised interest rates by 425 basis points since March 2022. However, they indicated that this pause was dependent on the inflation outlook aligning with the forecasted trajectory. It is unlikely that this week's CPI data meets this requirement. Offsetting the positive news for the Canadian dollar is the prevailing optimism in the United States regarding the government's ability to avoid defaulting on its debt. Following emergency discussions at the White House, President Joe Biden and Republican leaders cautiously expressed hope for a potential agreement to raise the US debt ceiling. The agreement must be reached and approved by both houses of Congress before the federal government exhausts its funds to cover expenses, which could occur as soon as June 1 (only two weeks away). Despite House of Representatives Speaker Kevin McCarthy stating that the two parties remain considerably apart, he believes that a deal could be achieved by the end of the current week.
by BlackBull_Markets
USDCAD bears again place their eyes on six-month-old supportUSDCAD again fails to remain beyond the 200-DMA, suggesting another attempt in breaking an upward-sloping support line from November 2022, close to 1.3320 at the latest. The lower highs in the last two months and downbeat oscillators seem to put the Loonie pair bears in a better position this time. Hence, a break of the key support line appears more likely, which in turn can quickly drag the quote to the 50% Fibonacci retracement of April-October upside, near 1.3190. However, a 13-month-old ascending trend line, close to 1.3130, may challenge the bears afterward before giving them control. Meanwhile, the USDCAD pair’s recovery moves may again try to float above the 200-DMA hurdle, around 1.3460 at the latest. In doing so, staying stable above the 1.3500 threshold may become their target before eyeing the falling resistance line from March, around 1.3585. In a case where the bulls manage to remain in the driver’s seat past 1.3585, the previous monthly high surrounding 1.3670 and the late 2022 peak near 1.3705 will be on their radar prior to hitting the yearly top of 1.3860. Overall, USDCAD is likely to remain pressured and is a strong candidate to challenge the key support lines.
by MTradingGlobal