Another USD/CAD Trade - Forex News by FX Leaders

Another USD/CAD Trade

Posted Friday, October 13, 2017 by
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.

 

Technicals

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.

USDCADUSD/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.

 
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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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