⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Going Short On The USD/CAD

Posted Friday, September 22, 2017 by
Shain Vernier • 1 min read

In the post-FED environment, there may be a shorting opportunity for the USD/CAD. The USD/CAD is one of the world’s prominent commodity pairs. Crude oil, natural gas, and even timber sales play integral roles in the Canadian economy.

It is important to gain the proper perspective when trading the USD/CAD. The dynamics of North American trade dictate the Canadian dollar’s economy. Often, what is good for other nations is not good for Canada.

 

Technicals

 

A brief synopsis of the daily USD/CAD gives us a few keys:

 

USD CAD DailyUSD/CAD Daily Chart

 

From a technical perspective, this is the roadmap:

  • Currently, trade remains below the 13 Day SMA, and near the proximity of Thursday’s session low of 1.2317.

  • Pending Bollinger Band MP/SMA crossover

  • Daily SMA at 1.2357

  • 38% Fibonacci retracement at 1.2290

 

Bottom Line: Let’s keep this simple. It is a lazy Friday, with no land on the horizon. While I can appreciate a possible Doji presentation on today’s close, we are far from optimal market conditions.The market read here is to the bear. Until a close is established above the Daily SMA, the USD/CAD is primed to be sold.

If we are lucky, a sell of the Daily SMA of 1.2357 comes into play late in the U.S. session. As always, a 1:1 R/R scalp is the angle. If not, we come out guns blazin’ Monday morning, with a possible swing trade.

As always, trade smart and for tomorrow!

 
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments