#USDCAD has recently broken a bullish trend. Could this offer us short trading opportunities?
Watch the video to learn more…
The USDCAD has broken through a bullish trend as the risk on sentiment returned to the market. Seasonally the USD underperforms this time of year and we have seen the USD Index reject key resistance and break lower. Not only this but the Bank of Canada have talked of hiking rates in the middle of 2022. This can be seen as a positive for investors and could see the Canadian dollar appreciate in value.
Looking at the markets on the chart we can see that the price has reached a key resistance point and started to decline on the weekly time frame. The price has also broken through last week’s low suggesting that sellers are in control of the market currently. If the market is going to move lower we should see the 4hr begin to form a downward trend.
The 4hr chart is showing the change from the bullish trend to a bearish trend as the price has formed a new lower low. If the trend continues we should expect to see a lower high form at previous resistance levels highlighted on the chart.
Do you trade EURUSD? watch some more analysis here.
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