Is it time to add buys in USD/CAD? Detailed analysis below!Dear traders, after Bank of Canada's rate event yesterday, USD/CAD dropped
to the 1.3321 level. However, the fall was arrested as it is a strong support level .
Based on the current price action, it seems the 1.3320 support level would continue
to hold.
So, if price action becomes bullish at this level and the support level stays
unbroken, traders can consider going long USDCAD@1.3320 with SL below 1.3250
and TP at 1.3650 .
Usdcadlong
usdcad long positionas we can see, there is a FTR near here and since the price have reacted to the mouth FL of this FTR, I believe that there is a good chance that with this CP approach, we'll see a good reaction to this supply zone.
⚠️ Notice:
I will enter one third of my position when price touch the box and the rest of it in the middle of the box. My TP would be R/R=3 and 5.
Please trade with your own money management methodology and be aware that trading has its own risks and rewards.
Good luck ❤️
USD/CAD: Consolidation Calm Before the Storm? The USD/CAD has been consolidating since late last Friday. Key levels include 1.346 and 1.345 for the upper bound and 1.341 and 1.340 for the lower bound. The market appears to be in the middle of the storm that might be unleashed after the Bank of Canada’s (BoC) interest rate decision on Wednesday.
In January, the BoC made history by being the first major global central bank to stop its rate-hiking cycle and has kept rates unchanged at its last two policy meetings. However, the economy's unexpectedly robust performance since then has placed the bank in a challenging position and will test its determination to maintain a neutral stance.
After declining from its peak at 8.1% in 2022, inflation in Canada unexpectedly experienced its first increase in 10 months, surging to 4.4% in April from 4.3% in March. The increase is being attributed to the recent rebound in Canada's housing market.
The current market consensus is for an approximately 40% to 45% chance of a 25-basis-point interest rate hike on Wednesday. According to some, this is underestimating the possibility of a rate hike. Which means that the lower bounds of the current consolidation band could easily be tested (and broken) in the lead up to the interest rate decision.
On the other side of the trade, the US dollar faced obstacles as it was revealed that the US services sector experienced minimal growth in May, primarily due to a slowdown in new orders. This news brought an end to the initial surge in the USD, which was triggered by incredibly robust job growth.
USD/CAD Long Entries Fully Closed +650 Pips , Short Entry Ready This Is An Educational + Analytic Content That Will Teach Why And How To Enter A Trade
Make Sure You Watch The Price Action Closely In Each Analysis As This Is A Very Important Part Of Our Method
Disclaimer : This Analysis Can Change At Anytime Without Notice And It Is Only For The Purpose Of Assisting Traders To Make Independent Investments Decisions.
USDCADAs we can see on PEPPERSTONE:USDCAD 4H chart price braked 4H high & now price retrace to imbalance area. Here we can see 2 areas as our entry point. 1st area is low probability may be act as internal liquidity garbing area. 2nd area acting as strong DEMAND as occur to BOS in 4H chart. We are personally looking dis area as our entry point.
Will USDCAD Breakout with Western Texas Oil on the Rise?Are you ready for some oil talk? Because I've got some juicy information for you that might make your day. Rumor has it that Western Texas oil is about to rise, which could mean big things for the USDCAD.
You see, the Canadian dollar is heavily tied to the oil price, and if it goes up, we might see a breakout in the USD CAD. So, what does that mean for you? It means that you might want to consider loading up on oil and potentially making some sweet, sweet profits.
Now, I know what you're thinking. "But wait, isn't oil a volatile market? Isn't it risky?" And to that, I say, "Of course it is! But what's life without a little risk, am I right?"
So, if you're feeling adventurous and want to capitalize on the rise of Western Texas oil, I encourage you to load up and get ready for the ride. Who knows, you might just come out on top.
Happy trading!
USDCAD POTENTIAL LONG FORMATION IN PROGRESSWe are looking to potentially long this pair due to the following reasons listed below:
1: Higher time frames remain largely bullish
2: Key Level breakout and change in market structure from bearish to bullish
3: Trendline breakout
4: Bullish falling wedge breakout
The consider the frame on multiple time frames before we consider which direction to potentially trade.
Bullish Outlook on USDCAD- 26 May 2023On the 4H timeframe, there is bullish order flow, forming higher highs and higher lows. Price tested a key resistance zone at 1.3650 on the 4H timeframe. A throwback to the key support zone at 1.3590, which is in line with the 38.2% Fibonacci retracement, and a break above the confirmation level at 1.3650 could provide bullish acceleration towards the resistance zone at 1.3780, which coincides with the 161.8% Fibonacci extension level. Price is holding above the Ichimoku cloud and 20 EMA, supporting our bullish bias.
USDCAD: The influence of USDThe BoC takes a more dovish path
The Bank of Canada flagged areas sensitive to rising interest rates like the housing sector. The BoC noted that housing activity has fallen sharply and household spending is falling. Furthermore, in the released statement prior to the Q&A BoC’s Macklem stated that the tightening phase will draw to a close, ‘but not there yet’. He added that they expect growth to fall in the next few quarters. As a balance to this statement, the BoC still stated that policy interest rates will need to rise further to counter elevated inflation. The Council also repeated that the bank’s preferred measure of inflation (core) is not showing meaningful signs of price pressure easing. So, this means the BoC is starting to start thinking about slowing the path of rates. This is a more dovish stance from the BoC and should allow the CAD to weaken somewhat over the medium term. After the rate statement, Governor Macklem highlighted that he expected a ‘significant slowing of the economy to occur’.
USD/CAD Last Entry +240 Pips , New Entry To Who Missed First !This Is An Educational + Analytic Content That Will Teach Why And How To Enter A Trade
Make Sure You Watch The Price Action Closely In Each Analysis As This Is A Very Important Part Of Our Method
Disclaimer : This Analysis Can Change At Anytime Without Notice And It Is Only For The Purpose Of Assisting Traders To Make Independent Investments Decisions.
USDCAD ANAlySIS hey all., here looking at the dxy i see some strength to the upside then i take a look at usdcad and see we broke structure and have came back for a clean retest and rejection of the breakout area, this with the confluence of bullish divergence this set up looks decent!
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information shared is for educational and demo purposes only!