FOREX Chart Of The Day: Will USDCAD Trend Continue
Are you trading USDCAD today?
In this video we discuss the current trend and what we expect to see from the major currency pair.
Watch the video to learn more…
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 look at USD/CAD as the price has broken through 1.3.
Now, this is a key level that we spoke about in the Forex Market Outlook, as well as a Forex video last week, and we spoke about the fact that the USD/CAD at 1.3 could continue to break lower if the US oil market continues to climb. We can see here the WTI has broken above those 44 Dollar highs and continued to break to the upside.
If we look at the four-hour time frame on oil, at the moment, we’ve got the market forming a bit of a consolidation pattern after it rallies up.
And,, if we look left, we can see the market rallied up from these 38-Dollar level, rallied up into the 46-Dollar level, and now we’re starting to get a bit of consolidation.
So, that’s showing us that the market may still be preparing for another move to the upside here.
May even come back down and retest that 44 Dollars before seeing another rally up, and if that’s the case, then I expect USD/CAD to continue to push to the downside.
Now, I was looking at the monthly time frame, and we can see that around, about 128 is a decent level on USD/CAD. There’s a nice low formed in 2018 and a high back in 2014, which the market has reacted from this level quite nicely from.
We’re at the end of the month now and we can see how bearish this candlestick is, which suggests to me that we could see some further downside as well.
So, going into the daily timeframe with that trend is looking pretty decent, we’ve got this market making lower lows and lower highs currently.
What I’d like to see is a bit of a pullback, and if we get a pullback that may be into that 1.3 level, we could look for further shorting opportunities.
One time frame I’m really going to keep an eye on is this four-hour. If the four-hour [timeframe] continues to make a lower high and lower low, then it’s going to be good further shorts and opportunities.
We have some slight resistance up around about 1.2980. So, if we were to get the market pulling back into this level and we were to see some bearish price action, we could assume that the market is finding resistance here and that we could expect the overall trend to continue.
We may see a rally up into 1.3, but I’m expecting a rejection of that for a continuation to the downside. So USD/CAD is looking really really good for further shorting opportunities. Looking to see if we can get this into 1.28 as targets.
Thanks for watching this video update, and I’ll speak to you soon.
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