September Top In View For USD/CAD - Forex News by FX Leaders

September Top In View For USD/CAD

Posted Tuesday, October 8, 2019 by
Shain Vernier • 1 min read

Amid falling WTI crude oil prices, the USD/CAD is on the bull. Rates are back above 1.3300 and looking to drive higher ahead of tomorrow’s FOMC Minutes. In the event that they do, a key resistance level may come into play during midweek trade.

Of all the forex majors, the USD/CAD is in for an exceptionally active 24+ hours. With several key events scheduled on the economic calendar, volatility is almost a certainty. If you are trading the Loonie, here are a few events worth watching until 2:00 PM EST Wednesday:

  • API Crude Oil Stocks (Tuesday, 4:30 PM EST)
  • EIA Crude Oil Stocks (Wednesday, 10:30 AM EST)
  • FED Chair Jerome Powell’s Speech (Wednesday, 11:00 AM EST)
  • FOMC Minutes (Wednesday, 2:00 PM EST)

The combination of the crude oil inventory cycle and FED activity will very likely drive participation to the USD/CAD. Be sure to implement proper risk management principles as this super-charged news cycle progresses.

USD/CAD Approaches September’s Highs

At press time (1:45 PM EST), the USD/CAD is on the march above 1.3325. This is in the middle of a four-session value area that extends from 1.3300 to 1.3350.

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

Here are two levels to watch ahead of tomorrow’s FOMC Minutes:

  • Resistance(1): September High, 1.3382
  • Support(1): Daily SMA, 1.3277

Bottom Line: In the event we continue to see the Greenback rally, a shorting opportunity from just beneath September’s high will come into play. Until elected, I will have sell orders in queue from 1.3371. With an initial stop loss at 1.3406, this trade produces 35 pips when using a standard 1:1 risk vs reward management plan.

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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.
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