FOREX Chart Of The Day: Is It Time To Buy USDCAD?
Hi guys, welcome to today’s Blueberry markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we will be taking a look at USD/CAD as we’re looking for potential long opportunities.
I want to be a buyer of the US Dollar, and the reason is that the strength and weakness table suggests that we continue to buy that market and look for CAD weakness. We’re looking for the US Dollar to gain some value, and for the CAD to lose value. So, it makes perfect sense to look at USD/CAD for that long opportunity.
If we’re going to the weekly timeframe, the market is bouncing right at this key supporting zone — a really big zone between 1.34 and 1.33. The market has been in here a couple of times and has reacted from this zone. So, we can see last week we had a nice Doji indecision candle, suggesting that something could be forming here.
Now, we’re looking at this daily timeframe; we can see that the daily hasn’t changed simplicity just yet. The price is bouncing at this support zone. To see a conservative simplicity change on the daily, what you want is for this to be a higher low, and a break out of this high, here, before looking for long opportunities,
What I quite like is this four-hour timeframe at the moment. Going into this, we can completely see that it has already changed trend because the market has formed this double-bottom, formed a higher high, and now, it has pulled back. It is our low, and the market is now starting to impulse to the upside.
As I said for conservative traders, you want to wait for a breakout of these highs because it has a nice little zone there. But if you’re going to look for an early opportunity, which might be a low-risk opportunity, what I’ll be looking for on this 15-minute is a little pullback entry.
We can see what I typically would enter off as a change in cycle. You can see, here, the market is double-bottomed and broken out. For me, candlestick would be a typical entry, but the price has already broken out of that area. You could probably line up an opportunity around the 1.34 area, making sure your stop losses are below these lows and look for a continuation opportunity.
It may feature as a Blueberry Jam Trade this evening since at the end of the day it might finish pretty similar to how it is finishing now; I will look to buy the high of this candlestick potentially. We can place stop losses below the lows, in line with that strength from the weakness table analysis. So, we’re looking good for some reversal here and some pressure on this CA Dollar, which is looking quite good to exploit currently, especially against the Swiss Franc. We can see from today; there is a retest of some lows in here. So, that would have been a good opportunity to get short on this today. CAD is now under pressure. It seems to be losing ground against a lot of other currencies, apart from EUR and GB Pound. GB Pounds are getting quite battered at the moment. But as for USD/CAD, I do like the opportunity to go along in this market. Weekly highs, here, would be the overall intended target for this. Keep an eye on this one. It could be good going into this week.
Thanks for watching, and I’ll speak to you very soon. Cheers!
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