USD/CAD Posts New Lows For 2019 - Forex News by FX Leaders
Canada

The Loonie is thoroughly enjoying the July bull run in WTI crude oil and the 180-degree pivot in FED policy. Rates in the USD/CAD are on the bear once again today, posting fresh yearly lows. If nothing else, it is looking like the summer of 2019 is shaping up to be a great time for the Loonie against the Greenback.

Over the past 72 hours, the commodity dollars have turned up the heat on the USD. A three-session rally in the AUD/USD and the subsequent selloff in the USD/CAD have been highlights on the forex. At this juncture, it appears that these two pairings may be ready to regain some of 2018’s losses.

USD/CAD Drives At 1.3000

The daily technical outlook for the USD/CAD is bearish. Until we see a decent bounce, the trend is down and a short-side bias is warranted.

USD/CAD, Daily Chart
USD/CAD, Daily Chart

Bottom Line: As far as technical levels go, the only one on my radar is the Psyche Level at 1.3000. Big-round-numbers have a way of standing up in the Loonie ― perhaps 1.3000 will prove to be valid short-term support.

Going long from just above 1.3000 isn’t a bad entry for a counter-trend trade in the USD/CAD. Until elected, I will have buy orders in queue from 1.3009. With an initial stop loss at 1.2989, this trade produces 20 pips on a standard 1:1 risk vs reward management plan.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of