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U.S. Dollar / Canadian Dollar

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USDCAD trade ideas

USD/CAD – Bearish Reversal Ahead?In this investment analysis, we are looking at USD/CAD, which is approaching the completion of a Harmonic Bat pattern, with the potential reversal zone (PRZ) around 1.3785 acting as a significant resistance level. After a strong rally from point C, price is now testing this critical area, suggesting a possible short-term correction or bearish reversal. The TDGMA indicates that the market is nearing overbought conditions. This adds further weight to the bearish reversal thesis, as historically, price has corrected after reaching such levels of overextension. 1. Sell from Point D (Bearish Reversal) Rationale: The Bat pattern is known for its reliability in forecasting reversals after reaching point D. With price now facing resistance at 1.38 zone and a nearby downtrend line, the odds favor a bearish reversal. The confluence of resistance and the completion of the pattern strengthen the case for a downside move. Entry: Sell after pattern confirmation and the appearance of a reversal candlestick near the 1.3785 resistance. Take Profit (TP): 1.36450 (above key support zone) Stop Loss (SL): 1.38 (above immediate resistance) The Bat pattern's completion, coupled with the strong resistance at 1.3785 and the overbought signal from the TDGMA, points to a high probability of a bearish reversal. This makes the short setup from point D a highly reliable and profitable strategy. Watch closely for confirmation before entering!
Short
by MrVNpt
2
USD/CAD Analysis: Exchange Rate Rises for Seven Consecutive DaysUSD/CAD Analysis: Exchange Rate Rises for Seven Consecutive Days Data shows that USD/CAD has formed seven consecutive bullish candles since 3 October, and today could mark the eighth in this sequence. This strong rise in the pair has been driven by the strengthening of the US dollar amid several fundamental factors. Media reports suggest that traders are reassessing the likelihood of further Federal Reserve rate cuts after yesterday’s inflation data release (as reported by Forex Factory): → Core Consumer Price Index (CPI) month-on-month: actual = 0.3%, expected = 0.2%, previous = 0.3%; → CPI month-on-month: actual = 0.2%, expected = 0.1%, previous = 0.2%; → CPI year-on-year: actual = 2.4%, expected = 2.3%, previous = 2.5%. Market participants may be speculating that the Fed will hold off on further monetary easing. Will the US dollar continue to strengthen against the CAD? Technical analysis of the 4-hour USD/CAD chart shows that: → The RSI indicator remains above 80, a rare occurrence in 2024; → The price is nearing the upper boundary of a descending channel (drawn from key reversal points marked by arrows); → The price is below the 1.3800 level, which acted as support in August but was broken, suggesting potential resistance. These technical factors point to the possibility of at least a bearish correction from overbought levels after a 2% rise in USD/CAD from its October low. The long upper wicks on recent candles further support this idea. Bears may attempt to take control with the release of key news today: → 15:30 GMT+3 – Canadian labour market data; → 15:30 GMT+3 – US Producer Price Index (PPI) data. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
by FXOpen
1
USDCAD Approaching our sell entry.The USDCAD pair has been rising since the September 25 Low, all inside a 2-year Rectangle pattern of a wide range. The 1D RSI is about to enter the 70.00 overbought zone and every time it has done so within this pattern, a little later it got rejected to at least the 1D MA50 (blue trend-line). As a result, we will wait until 1.38500 and sell, targeting 1.36000 (which would be a -1.86% decline from the top, the minimum from the group of similar declines) or take the profit if the price hits the 1D MA50 before 1.36000. ------------------------------------------------------------------------------- ** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. ** ------------------------------------------------------------------------------- 💸💸💸💸💸💸 👇 👇 👇 👇 👇 👇
Short
by TradingShot