Selling USD/CAD at 1.4254 aligns with recent technical indicators and market conditions. Here's a detailed description of this trade setup:
Trade Setup:
Entry Point: Sell USD/CAD at 1.4254
Stop-Loss: Place a stop-loss above the recent resistance level, around 1.4316, to manage potential upside risk.
Take-Profit: Target the next significant support level near 1.4150, allowing for a favorable risk-reward ratio.
Technical Analysis:
Resistance Level: The 1.4250-1.4265 zone has acted as a significant resistance area. A rejection from this zone could signal a bearish continuation.
FOREX24
Moving Averages: The pair is trading below the 9-day and 14-day Exponential Moving Averages (EMAs), indicating bearish momentum.
MYFOREX.COM
Relative Strength Index (RSI): The 14-day RSI remains below the 50 mark, confirming prevailing bearish sentiment.
MYFOREX.COM
Fundamental Factors:
Trade Tariffs: Uncertainty surrounding potential U.S. tariffs on Canadian exports has contributed to the Canadian dollar's recent volatility.
REUTERS
Bank of Canada Policy: The Bank of Canada has been cutting interest rates faster than the U.S. Federal Reserve, leading to a widening yield gap that may pressure the Canadian dollar.
REUTERS
Risk Management:
Volatility Consideration: Given the potential for increased volatility due to trade negotiations and central bank policies, ensure position sizing aligns with your risk tolerance.
News Monitoring: Stay updated on developments related to U.S.-Canada trade relations and Bank of Canada announcements, as these can significantly impact USD/CAD movements.
This trade setup combines technical indicators with current fundamental factors, providing a comprehensive approach to selling USD/CAD at 1.4254.
Trade Setup:
Entry Point: Sell USD/CAD at 1.4254
Stop-Loss: Place a stop-loss above the recent resistance level, around 1.4316, to manage potential upside risk.
Take-Profit: Target the next significant support level near 1.4150, allowing for a favorable risk-reward ratio.
Technical Analysis:
Resistance Level: The 1.4250-1.4265 zone has acted as a significant resistance area. A rejection from this zone could signal a bearish continuation.
FOREX24
Moving Averages: The pair is trading below the 9-day and 14-day Exponential Moving Averages (EMAs), indicating bearish momentum.
MYFOREX.COM
Relative Strength Index (RSI): The 14-day RSI remains below the 50 mark, confirming prevailing bearish sentiment.
MYFOREX.COM
Fundamental Factors:
Trade Tariffs: Uncertainty surrounding potential U.S. tariffs on Canadian exports has contributed to the Canadian dollar's recent volatility.
REUTERS
Bank of Canada Policy: The Bank of Canada has been cutting interest rates faster than the U.S. Federal Reserve, leading to a widening yield gap that may pressure the Canadian dollar.
REUTERS
Risk Management:
Volatility Consideration: Given the potential for increased volatility due to trade negotiations and central bank policies, ensure position sizing aligns with your risk tolerance.
News Monitoring: Stay updated on developments related to U.S.-Canada trade relations and Bank of Canada announcements, as these can significantly impact USD/CAD movements.
This trade setup combines technical indicators with current fundamental factors, providing a comprehensive approach to selling USD/CAD at 1.4254.
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.
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.