USD/CAD Trade Setup – Who’s up for Swing Trade?

The commodity currency, Loonie, began the week with sharp gains amid a favorable G20 Summit. Currently, USD/CAD is trading at 1.3280, and has soared nearly 130 pips to cover the opening gap from Monday. For now, investors are waiting for the Canadian monetary policy for further clues about the trend.

The Bank of Canada is expected to maintain the benchmark rate at 1.75%, however, any remarks on the next policy and rate hike are likely to drive nice volatility in the market.

Potential Swing Trade – USD/CAD
On the 4 hourly timeframes, the pair has entered the overbought zone, while a bearish trend line is pushing the pair lower at 1.3290. Looks like the USD/CAD is likely to form a bearish engulfing pattern which may initiate a sell-off in the market.

So, here’s a quick trade – We have just opened a trading signal to sell below $1,3285 with a stop loss above $1.3335 and a take profit of $1.3203.

So good luck and stay tuned to FX Leaders for more updates!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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