Another USD/CAD Trade
Shain Vernier • 1 min read
The USD/CAD has been good to us this week. If you made a few bucks on some of this week’s recommendations or today’s trading signal facing this pair, great work. No doubt about it, trading is much more rewarding when there is a steady revenue stream coming in.
This morning’s CPI release has come and gone, bringing heat to the USD. Let’s trade the aftermath.
Multiple timeframe analysis is a necessity if you are an active trader. While intraday charts are useful when trading volatile instruments, the daily chart can be a valuable tool for attacking markets in rotation.
USD/CAD, Daily Chart
From a technical standpoint, not much has changed over the past few days. We are seeing a tightening between our key support and resistance levels. Here is how I am going to trade this market:
Scalp 1:1 R/R longs from support at 1.2445. Stop below Thursday’s low at 1.2432.
Taking a position long at market. Stop below Thursday’s low of 1.2432. Looking for topside resistance as my profit target at 1.2530. Currently yields a 2:1 R/R.
Bottom line: Sooner or later we are going to break out of this range. Janet Yellen’s comments on Sunday may prove to be the catalyst that gets the job done. For now, I am going to play this market to the long, looking for a return to topside resistance.