USD/CAD Trade Setup – Inflation Figures Awaited!

It's been a long time, I haven't written much on Loonie, but today Canadian Dollar is one of the currencies in focus. As discussed in the morning brief, the Canadian economy is due to release the Inflation data. Check out the trade plan for Loonie…

Technical Outlook- Intraday

The USDCAD pair soared nearly 300 points this month, and it's still holding below $1.2408, the major support, for now, is 1.2235. The USDCAD has a strong negative correlation with the WTI Crude Oil as the Canadian economy's most of the revenue comes from the crude oil export, nearly 70% from the United States. The Oil prices are supported near $50/barrels keeping the Canadian dollar stronger against the Buck.

USDCAD – 4 Hour Chart – Trading Range 

On the daily chart, we can see a bearish channel, along with a major resistance at $1.2370, the support come resistance level. Below this, the pair can target $1.2225. The momentum indicators are signaling a selling bias.

USDCAD – Key Trading Levels

Support     Resistance

1.2308        1.2356    

1.2290        1.2386    

1.2260        1.2404

USDCAD – Trading Idea

Now the crucial trading level is $1.2230. The idea is to stay in buying above this level with an aim to target $1.2335 and a stop loss below $1.2200.