Good morning Traders!
Following a very busy week of economic news and Central Banks interest rates hike, we
saw some strength returning into the US dollar, and one of my favorite pairs at the
moment is USDCAD.
USDCAD – Consolidating at Resistance
USDCAD has maintained it’s uptrend on the Weekly chart, despite the strong selloff that
we saw in the US dollar in the previous weeks. The market has found support at the 1.32
area, and despite several attempts by the sellers to push the price lower, buyers slowly
came back to defend this level. The market has then continued to climb higher, clearing
the previous Daily swing Lower High with a strong buying candle.
The bullish momentum continued, and now we have a confirmed uptrend on the Daily
chart as well. For several days, the buyers have tried to break the 1.37 level before sellers
took over and pushed the price lower, however, buyers quickly came back, thus printing a
new Daily Higher Low.
Once again, the market is knocking at the doors of 1.37, with yesterdays’ move seeing
another pullback, but so far, not as low as the previous one.
For a potential opportunity, I’d like to see another touch at the 1.37 with some further
price compression to allow for a potential tighter stop loss.
However if the market will break the 1.37 without another touch, then I will be looking for
a potential retracement setup, if the market will pullback to test this level from above.
The next potential line of resistance could come at around 1.38.