USD/CAD could be gearing as much as prolong its longer-term uptrend!
Suppose the pair will make new month-to-month highs within the subsequent couple of days?
We’re taking a better have a look at the 4-hour time-frame:
USD/CAD 4-hour Foreign exchange Chart by TradingView
The U.S. greenback misplaced floor towards a number of main currencies on Monday as merchants warmed to the concept the federal government shutdown would possibly truly be ending. That shift had traders shopping for threat property once more, together with the commodity-linked Canadian greenback.
The Loonie additionally caught a carry from greater crude oil costs, which are likely to assist Canada’s foreign money each time power markets agency up.
If the upbeat tone doesn’t final, USD CAD may simply discover itself bouncing again from this slide.
Do not forget that directional biases and volatility situations in market worth are sometimes pushed by fundamentals. Should you haven’t but performed your fundie homework on the Canadian greenback and the U.S. greenback, then it’s time to take a look at the financial calendar and keep up to date on each day elementary information!
USD/CAD has been in a gentle uptrend since late July, however the pair just lately turned decrease after hitting resistance close to 1.4140. It’s now buying and selling nearer to the 1.4050 psychological stage.
As you’ll be able to see, the present ranges line up with the mid-channel zone of the ascending channel on the 4-hour chart. Not solely that, but it surely additionally sits close to the 100 SMA and the 50% Fibonacci retracement of the late October upswing.
If consumers maintain stepping in and USD/CAD holds above 1.4050, the pair may work its manner again towards the 1.4150 swing highs and presumably even problem new highs for November.
But when yesterday’s pullback continues, USD/CAD may slip towards the 1.4000 psychological stage and presumably slide additional to the 1.3950 channel assist zone.
Whichever bias you find yourself buying and selling, don’t overlook to apply correct threat administration and keep conscious of top-tier catalysts that might affect total market sentiment.
Disclaimer:
Please bear in mind that the technical evaluation content material supplied herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one facet of a complete buying and selling technique. The technical setups mentioned are meant to focus on potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling choices, threat administration methods, and their ensuing outcomes are the only accountability of every particular person dealer. Please commerce responsibly.