USD/CAD Trade Setup - Who's up for Swing Trade? - Forex News by FX Leaders

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

Posted Wednesday, December 5, 2018 by
Arslan Butt • 1 min read

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!

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About the author

Arslan Butt // 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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