USDCAD today seems to have found some kind of support and major rejection @ 1.363 which also happened to be the Weekly 21 Ema. As we can see in the past USDCAD seems to have a weak spot for this area. Even if we were to test the 1.345-1.335 area over the next week or two I would still be cautious of a further downtrend unless oil starts to rally to the upside. But as we can see in the charts below it seems that even oil doesn’t know where it wants to go. Further oil losses would probably help USD reach levels above 1.40, although everything right now is awaiting the nonform payrolls release friday morning and bad numbers might see this pair drop to the 1.345- 1.335 support area.
CAUTIOUS Trade Ideas
IF you are already in a bearish trade from 1.41 or higher set your stop loss to a desired profit level
IF you caught the bottom from 1.363 then set your stop loss to break even and hope for good USD news
IF you are not in a trade wait to see if we get a bearish entry signal in the 1.39-1.38 area, or a bullish entry signal in the 1.363 area
1 Better than expected NFP and bad CAD Employment will push the USDCAD higher to 1.39-1.38 area, where bears will be waiting for a sell off or not.
2 London will start the sell off and bad NFP and good CAD employment will push everything lower
3 Both events cancel each other out and we walk off to lunch cause it’s friday and we all need a break 🙂