FOREX Chart Of The Day: USDCAD Hits Target
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
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In this video, we’re going to take a look at USD/CAD. It was on our list to look for long positions. Obviously, we also had a long position in this market, which hit targets. So we’re going to go through that and how we could potentially continue to buy this market.
So really like the idea of buying USD/CAD. CAD was one of the weakest currencies last week, according to strength and weakness. The Dollar is also on a potential reversal, and we can see that right here, where we can see the market finished as a nice little Doji last week.
Closing back above these previous weekly lows, and now we’re starting to break weekly highs, which have led us to one of our trades hitting targets.
And you know, looking at this weekly timeframe, I’m expecting prices to continue the pullback. Okay, and I’ll say the pullback because technically, the market is making lower lows and lower highs.
So, I’m not expecting the market to, you know, rally and shoot all the way up here. All I’m expecting is maybe a re-test in and around that 134 area.
So just for now–if I place a line around about 134, which is just those lows just through there. Somewhere around here– this is where I’m expecting the market to kind of head towards.
So just kind of looking at the daily time frame. We looked at the potential for a long trade after seeing this bullish candlestick where we went to the four-hour time frame, and we placed a buy limit order in at this level here or even just slightly higher with our stop losses below the lows, rallied up hit our targets really nicely just through there.
We can see here, these four-hour trends looking good. We’re getting higher highs and higher lows, so in this case, I’m looking for the market to pull back once again to look to get long.
What I’m looking for in particular is nothing or anything different from what we actually saw down in here, which is that pullback to those highs and then a rally up.
So I’m just going to do the exact same thing again. I’m going to look for the market to pull back down into this area, to then look for along position. Because, if we’ve got a good a couple of hundred pips to go towards that 1.34 level, this four-hour trend should continue to the upside.
At the moment, obviously, the daily timeframe had a huge bullish close yesterday. The market is probably going to comeback re-test these highs, which isnatural for the market to do. But the weekly has broken the highs already of last week, which is really good, and I’m looking for that to extend to the upside.
So what I’ll be looking for here, in particular, is the price to drop back down into this level. can look for one or two things. You could look for the changing cycle on a lower time frame, so maybe the hourly or the 15-minute, or we could look for a four-hour price action trade.
You could even consider a limit order around this sort of area with stop losses below these lows, which may feature on the Blueberry Jam later depending on where the price is. Looking for that continuation of this CAD weakness.
So, keep an eye on this USD/CAD. I’m expecting some further long opportunities if the price does come back into that 130-160 area. Look for those.
I hope you have a great week trading, and I’ll catch you in the next video.
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