USD/CAD Bearish Rally at Pause, Buckle Up for Long Position
Arslan Butt • 1 min read
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.