USD/CAD Trade Setup – Inflation Figures Awaited!

Posted Friday, October 19, 2018 by
Arslan Butt • 1 min read

Today the Canadian dollar is one of the currencies in focus. As discussed in the morning brief, the Canadian economy is due to release the Inflation data during the New York session and it can be a good time to trade the USD/CAD. Check out the trade plan for Loonie…

Technical Outlook- Intraday

The USD/CAD soared more than 150 points in two days as the dollar continued to strengthen against its peers especially after the hawkish FOMC. For the moment, the USD/CAD is holding below $1.3062, the major resistance area.

Due to the fact the that Canadian economy’s most of the revenue comes from the crude oil export, nearly 70% from the United States, the Loonie shares a strong negative correlation with WTI crude oil. The crude oil prices have dropped below $70/barrel, which is also keeping the Canadian dollar weaker against the Buck.

USD/CAD – Key Trading Levels

Support Resistance

1.3036 1.3106
1.2993 1.3132
1.2923 1.3202
Key Trading Level: 1.3062

USD/CAD – Trade Plan
The idea is to stay in selling below $1.3060 with a target of $1.3035 and a stop loss above $1.3085. The fundamentals will change later today and we may see a reversal in the market.

Stay tuned to FX Leaders for more updates!

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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