USD/CAD Bearish Rally at Pause, Buckle Up for Long Position

The USD/CAD lost almost 1%, giving up all the gains it collected to cover up for the previous week. Are you ready for a trade plan?


As you know, the market volatility was insane on Friday. The USD/CAD lost almost 1%, giving up all the gains it collected to cover up for the previous week. Once again, the credit goes to the weaker dollar for this. The Greenback slipped ahead of a US Federal Reserve meeting this week where the central bank is widely expected to leave interest rates unchanged.

Anyhow, the bearish momentum in the USD/CAD seems to take a pause on Monday. The RSI and the Stochastic suggest that the downside trend is likely to continue as the former weakens below its 50 neutral thresholds and the latter returns below its red signal line.

At the moment, the pair is holding above a double bottom level of $1.3185 which may push the pair higher up to $1.3290. On the flipside, the bearish breakout of $1.3180 can trigger further selling until $1.3120.

USD/CAD – Trade Plan

We are in a buying trade above $1.3220 with a stop below $1.3190 and take profit around $1.3270.

Good luck!

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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers