FOREX Chart Of The Day: Ride The USDCAD Trend

The #USDCAD continues to trade higher and could give us an opportunity to ride the up and coming trend. 

I wanted to go over USD/CAD again because the price retested the previous structure and continued to push to the upside. The price is breaking out of weekly highs, so I’m going to point out the level to watch for an opportunity. At the moment, the price came back, retested the structure, and is now breaking above yesterday’s high.

The USD/CAD price retested the range highs and continued to make its move higher. This is a good sign that the weekly timeframe trend could be in a reversal phase. We could see the daily and four-hour trend make higher highs and higher lows, giving us opportunities to trade the trend.

Weekly timeframe

In the weekly timeframe, we’re also getting a break above last week’s high. I’m looking for the price to retest this area for further long opportunities.

Four-hour timeframe

In the four-hour timeframe, I would like to see two closes above the previous structure high. If we get two closes above that high, then we could continue to trade the trend.

I also want to see a pullback into the previous structure area for long opportunities in the market.

The current price is breaking out of the weekly highs. We need to see two closes above those highs to confirm the change in trend. The two levels could see buyers step back in.

So keep an eye on USD/CAD. There are some highs, which could act as a resistance level. So, we need to see two clear closes above the highs for us to be a buyer.

We also have to keep a lookout on the retail sales coming out at 1:30 PM today and the FOMC rate statement tomorrow, which could cause fluctuation in the markets. We may see the price go down to the range level as well, where we can continue to look for another long opportunity.

The retail sales are forecast to be worse than expected. However, the CAD weakness in the market could see the price push up and head towards the 1.2465 overall target.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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