USD/CAD Trends Higher-More Trades On The Horizon

Posted Wednesday, October 25, 2017 by
Shain Vernier • 1 min read

The USD/CAD is ripping higher in the wake of the Bank of Canada’s (BOC) announcements. High volatility has defined the session for the Canadian dollar as it shown considerable weakness against the greenback, posting a three-month low.

A dovish stance from the BOC is the culprit for the fading CAD. Interest rates were held at a static 1%, promoting the availability of capital for companies and consumers alike. After rate hikes in July and September, the BOC decided to stand pat at least until December.


Technical Outlook USD/CAD

Today’s technical outlook in the post-announcement market is straightforward: trend day up.



Currently, the USD/CAD is trading in the neighborhood of 1.2800. Price shattered previous resistance at 1.2722 and has made an intraday high of 1.2816. As we move into the latter half of the week here are the key levels:

  • Macro resistance is present at the 50% retracement of the yearly range (1.2926).

  • The 38% retracement of the yearly range (1.2722) now acts as support.

Bottom Line: For the time being, I am on the sidelines for the USD/CAD. Starting with tomorrow’s session, shorts from the 50% retracement level will be open for consideration. Check back for strategies on how to trade this level successfully.

In an earlier update, I outlined the various trade management strategies for preserving profit and limiting risk ahead of the BOC’s statements. Today’s action in the USD/CAD is a prime example of how news items are capable of swinging a market dramatically upon their release.

It is crucial to always be aware of the economic calendar and aggressively manage risk to ensure future reward. If at all possible, we must avoid giving profits back to the market!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Crude Oil has been bearish for more than a year, but this week we saw a decent reversal higher on higher Caixin manufacturing
4 days ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments