USD/CAD – 4 Major Opportunities To Trade The Loonie


The commodity currency, Canadian dollar, edged higher against the greenback over the previous week. The USD/CAD pair dropped nearly 245 points to close at $1.3212, the lowest level since February 2017. The USD/CAD has a strong negative correlation with the WTI crude oil. This is because the Canadian economy's revenue comes from crude oil export, nearly 70% from the United States.

Despite the dramatic drop in the oil prices, the demand for the loonie strengthened. The bullish momentum in the Canadian dollar came in response to the hawkish remarks from BoC Governor Poloz. He had said that rate cuts had “done their job” as the economy extended to upgrade.

 

4 Opportunities To Trade The Loonie

  • Wholesale Sales m/m (Tuesday – 12:30)
  • Core Retail Sales m/m (Thursday – 12:30)
  • Retail Sales m/m (Thursday – 12:30)
  • CPI m/m (Friday – 12:30)

 

Forex Trading Signal – Idea

The crucial trading level is $1.3175. The idea is to stay in buying above this level with an aim of $1.3300 & $1.3375 with a stop loss below $1.3535.

USDCAD - Bullish Channel On Weekly ChartUSD/CAD – Bullish Channel On Weekly Chart

 

Technical Outlook- Weekly

On the weekly chart, we can observe a slightly upward channel, which begins at $1.2459 (May 3, 2016) to $1.3164 (June 16, 2017). At the moment, the loonie is holding right above the lower edge of the bullish channel, with a major support at $1.3175.

Considering the fundamentals, the pair has the potential to pull back from the lower corner of the bullish channel to test the next resistance of $1.3310 & $1.3380.

The momentum indicators, the leading indicators, the 20 & 50 periods moving averages are signaling a selling bias.

 

USD/CAD – Key Trading Levels

Support     Resistance

1.3165         1.3399

1.3093        1.3471

1.2976        1.3588

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers