USD/CAD-U.S. Session Trading Plan
WTI crude oil has certainly impacted the Canadian dollar in recent sessions, sending it south against the greenback. This week’s correcti
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/CAD, Daily Chart
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USD/CAD, Daily ChartHere 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.
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