USD/CAD: Getting Long At 1.2552-49
Shain Vernier • 1 min read
The USD/CAD long trade is approaching the key support levels I discussed yesterday. As of now, we are trading above entry by around 25 pips or so, but things can change rapidly. Stay aware and buy in at the 1.2552-49 level.
This entry is valid for the rest of today’s U.S. session as well as Sunday/Monday.
How Did We Get Here?
The economic data out of Canada this morning was somewhat positive. Canadian CPI numbers came in right on schedule with no surprises for the market absorb.
USD/CAD Daily Chart- Nearing Entry
During the overnight our 13 Day SMA has moved from 1.2543 to 1.2549. This tightens up our resistance zone and gives more credence to price exhaustion at 1.2552-49.
This is a good development as it gives us several trading options:
A scalp buy at 1.2552. 1:1 Reward/Risk with small profit target. Tight, fast trade.
Day trade buy at 1.2552. 2:1 Reward/Risk, stop below 1.2493.
Swing Trade buy at 1.2552. 3:1 Reward Risk, stop below 1.2493.
Bottom line: A short-term scalp of this level is the most affordable play. Initially, it may prove to be the best idea to grab a few pips and wait for the market to shake out. The long-term trades are more expensive and will take considerable time to sort out.
Either way, watch the money management and trade for Monday’s session.