Trade Of The Day: USDCAD – Retail Remains Short

Buy USDCAD New Trend Highs Ahead

USDCAD made fresh 11-year high of 1.3457 on Tuesday, underpinned by the fall in industrial production prices. Pair seems to be resuming its uptrend. July GDP growth is due today and consensus expects growth to slow to 0.2%m/m compared to 0.5% in June, which will likely weigh further on the CAD

Trading Idea

New highs for 2015 highs and for the past decade. While 1.33 supports intraday downside reactions expect new trend highs en route to test projected ascending trend line resistance at 138 next.

Looking to buy a dip towards 1.33 ahead of or post data release, leaning against 1.32 targeting 1.37. This trade benefits from bullish Order Flow readings and a bearish retail trading sentiment. This combination of factors often leads to a high probability trend continuation pattern.

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