USD/CAD-U.S. Session Trading Plan - Forex News by FX Leaders

USD/CAD-U.S. Session Trading Plan

Posted Thursday, November 16, 2017 by
Shain Vernier • 1 min read

WTI crude oil has certainly impacted the Canadian dollar in recent sessions, sending it south against the greenback. This week’s correction and test of the $55.00 level for crude has brought the energy bears out of retirement. If energies continue to experience pressure, the Canadian dollar may be in a weak position against the USD.

 

USD/CAD Technical Outlook

Currently, the USD/CAD is trading within a make-or-break technical area. On the daily timeframe, we are seeing very tight rotation within Wednesday’s range.

USD/CADUSD/CAD, Daily Chart

Here are the key levels for the remainder of today’s U.S. session:

  • Resistance(1): Daily SMA, 1.2743

  • Resistance(2): 38% retracement of current wave, 1.2761

  • Support(1): 38% retracement of yearly range, 1.2722

  • Support(2): 20 Day EMA, 1.2707

  • Support(3): Bollinger MP, 1.2697

Bottom Line: Price is currently trading in the vicinity of the Daily SMA, 1.2743. With such a tight range between support and resistance levels, a rotational approach is the best way to engage this market:

  • 1:1 R/R longs from downside support at 1.2707, initial stop at 1.2694

  • 1:1 R/R shorts from topside resistance at 1.2761, initial stop at 1.2777

As long as this market remains range bound, mean regression plays toward the Daily SMA is a solid plan for the rest of the U.S. session.

As always, trade smart and keep a close eye on your leverage!

 
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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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