Trade Of The Day – USDCAD To Test Weekly Support

USDCAD – Expect further weakness as weekly support test looms

CAD has strengthened against the US dollar, driven by oil prices that rushed to three-month highs this week, as oil forecasters turn bullish and see gains for black gold over the next two years. The loonie was also helped by a softer US dollar, which eased after Federal Reserve meeting minutes for September revealed the growing view that the US central bank is unlikely to raise interest rates this year.

Near term bearish tend remains intact as intraday resistance at 1.3020/40 contains intraday upside reactions bears target 1.2850 bids as the next downside objective

Trade Idea

  • Looking to play for further downside in the USDCAD, will sell into a corrective bounce testing 1.31/32 resistance zone highlighted on the daily chart. Monitoring intraday reversal patterns to venture short against 1.32 targeting a test of weekly support at 1.2850

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