FOREX Chart Of The Day: USDCAD and CADJPY Update
Did you trade USDCAD or CADJPY?
In this video update we discuss the two markets and how we are managing the positions.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
Practice trading with a demo account
In this video, we’re just going to take a little look at USD/CAD. The price has started to move in our favor. So, I just wanted to do a little bit of an update here and why we got long in the first place.
Now, really like the idea of trading USD/CAD long. I think we might have spoken about this even last week.
The fact that price has come down into the key-support of 1.31. Again, if we just look left, it’s all this sort of area just through here, where we bought from twice recently.
The price come back down, retested this structure. The market then made a lower low, high low on the RSI. So we were looking for opportunities to get involved with the market. What we said was we’d look for that four-hour time frame and look for that change in trend because that’ll give us the opportunity to then look for further trades. Because if we look at back to last time, we looked at the trades we waited for the market to change trend here.
So, we bought off of these highs. The market rallied nicely in our favor. The next step was to wait for the pullback into these highs, which we bought from. And then the market rallied once again in our favor. So that’s what we’re trying to look to do.
We’re looking to try and trade that four-hour time frame and that four-hour trend. The price has now broken trend once again, so we had this nice little move here. That’s why we look to buy off of these previous highs.
And again, now the market’s moving towards our 133 target. We’re going to look for further buying opportunities if the price can come back down on a short term scale.
So, the next kind of step, if you’re not in this move is to wait for this four-hour to close, confirm that, and we ideally want to see two closes above this 1.3 to 24 this high, just through here.
Once we get those two confirmed closes, that will allow us to look for the opportunity to buy further, okay.
So, if I then went to sort of the likes of a 15-minute time frame. We could then dive in a little bit further, and suggest that if the price was to come back and give us those two successful closes, and come back down and re-test this structure we could then look for another long opportunity on the likes of a double bottom pattern or, you know, triple bottom pattern or head and shoulders pattern.
Anything here to suggest that we would see that upside would be ideal for a secondary position. But, at the moment, four-hours looking good, USD/CAD moving nicely, to the upside.
Another chart that we had a little bit of interest in and we traded was CAD/JPY. This market-moving really nicely to the downside as well. When you start seeing these markets moving, and you could look at the accumulative sort of thing that we can look at.
Also, prices coming into this previous structure point. I know I’ve targeted the larger area. But when you see the price coming into these previous structures, this is where we want to look to take some positions off the table.
We’re currently around about 85 pips up. If I remember rightly, the stop loss is around about 106 pips. So if price did come down into this area, we would likely be at that one-to-one risk-reward ratio.
We can like to take some off the market there, or we can reduce risk and put stops towards breakeven. But once price hits this sort of low here, I’ll be looking to take some position off on CAD/JPY as well.
USD/CAD, CAD/JPY moving very nicely for us at the moment. USD/CAD really like this upside coming from here. Obviously I would like to be out of this by the time the US election rolls around.
So we’ll be looking for some opportunities if the price can sort of push a little bit higher and give us an opportunity to sort of take some profits I will do.
Thanks for watching this video update, and I’ll speak to you soon.
If you’re looking to trade the USD/CAD pair for the coming election, it is best to be prepared for multiple scenarios. You can practice your trading strategies without any risk to your capital when you open a free demo account with Blueberry Markets. Once you’re ready, our customer support team can assist you for a smooth, hassle-free US election day trading experience.