The price of USDCAD has reached the range highs where price could reverse. Will this offer short trading opportunities?
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The price of USDCAD has reached the highs of a weekly trading range and if the price was to form bearish weekly price action here we could look for the price to reverse. The Canadian Dollar was highlighted as the strongest currency on the strength meter which would have offered opportunities to buy the currency against the weaker ones. Now the USD has been moving aggressively higher this week as the data and risk sentiment fuels the greenback buyers. However, the price of the USD index has reached a major high which could see those buyers exit their positions and invite sellers to take over. If this happens we could see the reversal form in the USDCAD market.
The weekly chart shows the price in a trading range which shows how strong both currencies are as they fail to form a trend in either direction. Now the price is at the highs we need to no longer look for long ideas but instead look for short ideas now we are at resistance. If the price on the 4hr time frame rallies to the 1.2900 highs we could look for a short idea if the price was to then break the 4hr trend or reversal patterns.
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