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