USDCAD Technical Analysis Outlook November 8, Danger Lurking? The price of the USD/CAD currency pair has aggressively surpassed its moving average of 1.3070, trading at a current price of 1.3112 as of 12:40 PM, ET, November 8, 2018. The Mstardom Finance Forex Trading Strategy told us that a strong mean reversion possibility has developed, and we should be prepared to trade this opportunity if we weren’t already in the trade.
Our ideal trade entry range is between $1.3130 to $1.3187, where we will initiate a sell order. This means that anywhere within that range is a very good place to initiate a short-sell order. Remember to keep an eye on the Economic Calendar located on the Mstardom Finance Economic Calendar page to keep abreast of what economic events are scheduled for that time period that you have set aside to trade.
By looking at the current USDCAD daily chart on November 8, 2018 @11:04 AM, ET, we can see that our predicted price action has begun to take shape. In other words, the price has begun to approach our point of trade execution. The Mstardom Finance Proprietary Forex Trading Strategy told us to initiate a sell order when the daily price gets to between $1.3220 and $1.3242. The $1.3242 price target is our hypothetical resistance zone given to us by our Forex trading strategy. At this moment in time one could play Russian Roulette and go long for a short period of time. However, this strategy is very risky.
A courageous trader might be able to get away with trading the USDCAD pair that way simply because our Forex Trading Strategy told us that the USDCAD pair is currently exhibiting a very low dose of volatility. In an instant, this low-level volatility environment (of volatility less than one) could easily become an environment with a volatility greater than 4 to the upside, inducing upward momentum volatility or to the downside, inducing downward momentum volatility if there is a positive or negative news catalyst.
The way Mstardom Finance traders handle such unpredictable news catalyst from wreaking havoc on our trading is by keeping a close eye on the Economic Calendar located on the Economic Calendar page on Mstardom Finance. We pay the most attention to the upcoming events that is designated with three (3) bull heads.
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Disclosure: I/We/Mstardom Finance do not own a position in the USD/CAD currency pair.
Disclaimer: ©Mstadom, Inc., Mstardom.com, Mstardom Finance does not provide investment advice.
