FOREX Chart Of The Day: Will USDCAD Reverse?

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 going to break down USD/CAD as it was our chart of interest on the Blueberry Jam last night.

So, looking at USD/CAD, we can see that the price is slowing down into this zone. What I mean by slowing down is that the impulse or the retracement move is quite shallow in terms of there’s a lot of wicks to the upside and to the downside. The price is finding some indecision around this area.

Now, we can see that we have this nice bullish daily candlestick. I’m looking for the price to continue breaking to the upside and retest these previous structure lows from the overall downtrends. Typically, the price likes to move back and retest previous breakout areas. I’m looking for the market to retest that low in particular.

At the moment, the price is driving to the downside. We’re looking for that to move back higher. If we go down into the four-hour timeframe, we can see that the four-hour is in a slight uptrend to create a little bit of a pattern here or consolidation there. The market is currently retesting some structure lows.

If markets start to break to the upside or form some bullish price action, that’ll go in our favour for some long opportunities up into these levels, through that key low.

I’m going to be looking for a lower timeframe because we can see all these lows here, where the market is finding that support and resistance.

What I’m going to look for on that 15-minute timeframe is a change in cycle. If the market drives back into this level, do we get any double bottom patterns or inverse head and shoulders patterns to suggest that the price will start reversing back to the upside?

Just like it did yesterday, the market came back into this four-hour zone, double-bottomed, broke through, retested that structure high, and rallied. I’m looking for the same thing here. Is the market going to retest, double bottom, and rally to the upside?

I’m looking for that on USD/CAD. CAD is weaker this week according to the strength and weakness charts, so I’m looking for a reversal on this pair.

As long as this four-hour remains capped at this zone, we should start to see that upside out of this market with targets coming up there.

I like this because the US Dollar Index is at support. So, we could start seeing that US Dollar push higher. It is consolidating after the market formed this inverse head and shoulders pattern. I haven’t broken the neckline of that or at least this key high yet.

I want to see that market rally and push to the upside for those real US Dollar buying opportunities. But at the moment, we’re kind of capped around this area. The market is not doing much at this point.

I’m looking for that potential reversal in USD/CAD. We’re also looking for that 15-minute change in cycle for those intraday opportunities.

At the end of the day, we’re looking for a break from the current high. So, our stop losses will probably be tucked in below the lows in this market.

We’ll just see how this one pans out for us. I’ll leave it there.

Thanks for watching this video update. Please like and subscribe to the YouTube channel for more trading content if you like what you see. I’ll speak to you soon.

You can practice trading on our trading platform by opening a free demo account. If you’ve already signed up, you can get into the live trading game for as little as $100  in your account.