USD/CAD could be gearing as much as prolong its longer-term uptrend!
Assume the pair will make new month-to-month highs within the subsequent couple of days?
We’re taking a better take a look at the 4-hour time-frame:
USD/CAD 4-hour Foreign exchange Chart by TradingView
The U.S. greenback misplaced floor in opposition to a number of main currencies on Monday as merchants warmed to the concept that the federal government shutdown may truly be ending. That shift had traders shopping for danger property once more, together with the commodity-linked Canadian greenback.
The Loonie additionally caught a carry from greater crude oil costs, which are inclined to help Canada’s foreign money every time vitality markets agency up.
If the upbeat tone doesn’t final, USD CAD might simply discover itself bouncing again from this slide.
Keep in mind that directional biases and volatility circumstances in market value are usually 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 day by day basic information!
USD/CAD has been in a gentle uptrend since late July, however the pair lately turned decrease after hitting resistance close to 1.4140. It’s now buying and selling nearer to the 1.4050 psychological degree.
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, however it additionally sits close to the 100 SMA and the 50% Fibonacci retracement of the late October upswing.
If consumers preserve stepping in and USD/CAD holds above 1.4050, the pair might work its approach again towards the 1.4150 swing highs and presumably even problem new highs for November.
But when yesterday’s pullback continues, USD/CAD might slip towards the 1.4000 psychological degree and presumably slide additional to the 1.3950 channel help zone.
Whichever bias you find yourself buying and selling, don’t neglect to apply correct danger administration and keep conscious of top-tier catalysts that would 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 side of a complete buying and selling technique. The technical setups mentioned are meant to spotlight potential areas of curiosity that different merchants could also be observing. In the end, all buying and selling selections, danger administration methods, and their ensuing outcomes are the only real accountability of every particular person dealer. Please commerce responsibly.
