USDCAD – Testing pivotal resistance, bull bear line in the sand?
CAD strengthened against USD as oil prices supported the commodity-linked currency and the USD pulled back after a hawkish U.S. Federal Reserve statement. US crude prices settled slightly higher after its biggest rally in two months.
1.3260 provides decent resistance as anticipated as this area contains upside potential for another leg of corrective downside. A close above 1.3280 eases bearish pressure and resets focus on the 2015 highs and stops above.
- Still keying off my analysis of the USD Index which is testing pivotal resistance.
- I will be watching USDCAD today. I am looking to play this pair from the short side for another leg of corrective price action leaning against the current corrective high at 1.3276.
- I will be watching for a retest and failure into this level to enter short positions initially targeting a retest of ascending trend line support at the 1.30 level where I will reassess the price action as mapped in the chart below.
For updates on this trade set up and the other trades I am currently monitoring be sure to follow me on Twitter @LFXPatrick