By: John Ursus

Timeframe: W1

Recommendation: Short Position

Entry Zone: 1.0900 – 1.0975

Take Profit Zone: 1.0710 – 1.0760

Stop Loss Zone: 1.1050 – 1.1100

The USDCAD has rallied over the past 12 trading months. The rally took this currency pair from an intra-day low of 0.9632 to an intra-day high of 1.1278 from where it started to correct. This currency pair is now trading at resistance from its 38.2 Fibonacci Retracement and there could be an increase in volatility at this resistance level before the USDCAD is expected to decline to its 50.0 Fibonacci Retracement level.

Forex traders should split their order into several positions at resistance and slightly above in order to reduce risk for this trade. Any further rallies from current levels should be taken as a good opportunity to enter new short positions. Upside potential is currently rather limited while downside potential remains attractive.

USDCAD 82514

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    USD/CAD Turns Up Before March Low (former resistance)

  2. Forex News

    Dollar Forecast Improves, Indicator Shows it May Rally Across the Board

  3. Forex News

    USDOLLAR Index Consolidates in Bull Flag Post-FOMC

  4. Investing

    USD/CAD Finds Support During Wednesday Session

  5. Forex News

    USD/CAD Technical Analysis: Pullback Stalls at Support

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!