Last week on Friday, we had a strong retail sails report that gave us a bullish engulfing candle with this USD currency pairs. However I could expect by Monday 5:00 a.m. PST that we will reach a good fib level to buy into (Personally I would go for the 618) I also don’t expect that we will be making any long term higher highs on this currency pair as we have been ranging between weekly s1 and r1; but we are retesting monthly Pivot Point. Therefore, once we hit those fib levels – I would like to see this pair go up by Tuesday and no later.

USDCAD 2618 Double Bottom

In this chart we can see that strong support is at 1.28500 and strong resistance at 1.31300. The other thing I like a lot about this trade is that the lagging indicators are all lined up.

Crude Oil Short consolidation?

If we take a look at crude oil we can see that this pair has making some complex moves as we are retesting the support/resistance role reversal. If oil strengthens a little, that could mean we could have a better position to buy USDCAD on that double bottom.

6 thoughts on “USDCAD 2618 Double Bottom”

  1. Maryna says:

    Hi Daniel, there is a wedge pattern on the Daily which is getting narrower and would rather wait and see if it breaks above or below this wedge on the Daily chart – what do you think as I seldom trade USD pairs.

    1. Daniel Jonson says:

      Oh boy, good point of view on that, Maryna. It doesn’t look like the markets have chosen a side at all if that’s what you’re indicating with you’re wedge. Doing a breakout trade would be a wise idea for consolidating patterns, but I would also like to rely on some fundamentals on choosing a bullish/bearish side. Personally for me I’m a bull on USD and a bear on OIL currently; and I think it is very possible to make a buy trade with a break even stop once we reach the low points of your wedge.

  2. Dalmas Ngetich - FOREX.TODAY says:

    It will be good to wait for a break below or above that wedge-check Maryna chart- in my opinion. Price might consolidate towards the apex of that wedge and nullify any long or short projection.

  3. Maryna says:

    Both these currencies are equal, and I only trade strong/weak currencies together, so looks as if USDCAD is sideways for the day or consolidating. USD is a bit stronger than CAD, but focus on other pairs that are more viable to trade today i.e. AUDNZD/GBPNZD/NZDUSD/NZDCAD/NZDCHF. I really struggle to understand why traders don’t trade weak/strong currencies together and constantly focus on USD pairs. Please view my trades I post on Activity as Dima and I made so much money with the trades I post on Activity. Sure, there is always risk involved, but this is limited by trading strong/weak currencies together.

  4. Maryna says:

    Dalma, thanks so much for your inputs as well! Nice to discuss trades.

  5. Daniel Jonson says:

    I would gladly follow your posts on your activity Maryna. I’m still quite new to forex, and I would love to hear from other experienced traders.

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