USD/CAD Trade Setup – Inflation Figures Awaited! - Forex News by FX Leaders

USD/CAD Trade Setup – Inflation Figures Awaited!

Posted Friday, September 22, 2017 by
Arslan Butt • 1 min read

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 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.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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