Going Short On The USD/CAD
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.
A brief synopsis of the daily USD/CAD gives us a few keys:
USD/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!