How to Trade USDCAD – US Dollar v Canadian Dollar Trading Strategy: We discuss the technical analysis which underpins a bearish medium-term projection for USDCAD as we enter the first week of June.
The USDCAD pair (also known as “The Loonie”) has a confluence of technical reasons which support our sell argument. Friday’s bearish pin-bar reversal rejected a key, previously tested Fibonacci retracement level and this also correlated with an ABCD completion pattern. What is more, we had time-frame correlation on the lower timeframe (the hourly chart) in the form of a head and shoulders reversal pattern. This, coupled with bearish reversal divergence gives us a strong case that the US Dollar is likely to weaken against the Canadian Dollar over the next few days. That said, nothing is ever guaranteed and you should remember that anything can happen at any time in the foreign exchange market!
Traders in our online trading community were informed of this over the weekend in our flagship forex traders and commodity traders’ Market Insider webinar. Discover the reasoning behind our argument so you don’t miss out on the next trading opportunity in the foreign exchange market!