USDCAD - trading following the Bank of Canada rate decision Looking to sell rallies in the USDCAD, and I give you the reasons why (following the price action of the jobs report and CPI last two weeks) and the US Dollar index.
USDCAD trade ideas
USDCAD Looking For ShortIn USDCAD, the market's price is facing a higher Resistance zone where rejection of the price can be seen in the past. The support area is also a very strong zone where the price was rejected several times, Bears are gaining the strength against bulls. A good chance for the bears to enter the market and make it a downside move.
Is it time to Sell USDCAD? Interest Rate aheadThe USDCAD pair has been trending upwards steadily since 24 September, achieving a notable gain of 3.22% without any significant retracement. It is now approaching a key resistance level of 1.3880, the most significant resistance region since 2022.
USDCAD overbought?
The Relative Strength Index (RSI) indicated a reading of 75.53 on 21 October, suggesting a potential overbought condition for USDCAD. The RSI is a widely used indicator in technical analysis, employed to identify possible overbought or oversold scenarios.
Classic Bearish Divergence on H4:
On the 4-hour chart, USDCAD has formed a classic bearish divergence, signalling the potential influx of selling pressure. A classic bearish divergence occurs when the price makes higher highs while the RSI fails to keep pace, forming lower highs.
This is a powerful bearish reversal pattern, particularly relevant following a significant upward movement, as is the case with USDCAD at this time.
Technical Analysis Summary:
From a technical analysis standpoint, we have identified several key factors:
1. A directional upward movement, accumulating 3.22% in USDCAD.
2. The RSI indicates signs of buyer exhaustion on the H4 chart.
3. The presence of a classic bearish divergence on the H4 chart.
These elements collectively support the notion that USDCAD may be in an overbought situation, potentially creating selling opportunities.
Sell trigger with 9-period Moving Average
Recent price action has remained above the 9-period moving average, indicating a slight uptrend in the short term.
However, if the price crosses below the SMA9 on the H4 chart, this could act as a sell trigger, leading to a potential decline towards the 1.3690 region within a few days.
Impact of CAD Interest Rate Decisions:
The Bank of Canada is currently adopting a more dovish stance, gradually lowering interest rates as inflation moves closer to control. This has been evidenced in recent meetings, with a consistent 0.25% cut implemented at each meeting. The next interest rate decision is scheduled for 23 October, with the market anticipating a potential 0.50% cut. However, given that the last three meetings resulted in 0.25% reductions, a 0.50% cut appears unlikely at this stage. If the interest rate cut is smaller than expected, the CAD may appreciate in the short term, which could further contribute to a decline in USD/CAD.
Monitoring Key Developments
In summary, as USDCAD approaches a critical resistance level amid signs of overbought conditions, traders should monitor these technical indicators and market sentiments closely. With potential selling opportunities pending and the influence of interest rate decisions looming, it will be crucial to stay alert to market developments moving forward.
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Best Level to Short USDCAD TP +260 pips🔸Hello traders, let's review the 8hour chart for USDCAD today. Strong
V-shape recovery in progress off the lows, however sentiment getting
extremely overbought and also we are closing in on heavy overhead supply.
🔸Key mirror S/R detected at 3620, bears will target this level on the
re-test so it's a logical target for the short sellers from overhead resistance.
🔸Recommended strategy for USDCAD traders: focus on short selling high near 3880 price cluster SL fixed at 60 pips TP1 +140 pips TP2 +260 pips final exit at 3620. Expecting rejection from overhead resistance and re-test of
the mirror S/R level at 3620. good luck traders.
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USD/CAD Nears Key Resistance Ahead of Canadian Rate DecisionUSD/CAD is hovering just below a key resistance zone, setting the stage for potential high volatility as the Bank of Canada prepares for its next rate decision. Let’s break down what this could mean for the pair, from both a fundamental and technical perspective.
BoC Expected to Slash Rates as Inflation Continues to Cool
On Wednesday, the Bank of Canada (BoC) is widely expected to slash its key policy rate by 50 basis points, marking the fourth consecutive rate cut this year. This move would bring the benchmark rate down to 3.75%, its lowest level in over 15 years outside the pandemic, as the central bank attempts to spur economic growth amidst slowing inflation and weak consumer spending. As Canadian inflation continues to cool—hitting just 1.6% in September—economic indicators like stagnant GDP growth and a faltering housing market have added urgency to the central bank's decision-making process. The rate cut, if realised, could trigger a strong reaction in USD/CAD, given its proximity to long-term resistance and the likelihood of volatility leading up to the decision.
Multi-Timeframe Analysis
Let’s take a trip through the timeframes, starting with the weekly candle chart. On this higher timeframe, USD/CAD has moved into a key area of long-term resistance, where a cluster of five major swing highs since October 2022 has formed a formidable resistance zone. What makes this level even more significant is that USD/CAD has carved out two higher swing lows over the last year, creating a broad ascending triangle pattern. This classic bullish setup signals that a breakout higher could be on the horizon, especially with the rate decision serving as a potential catalyst.
USD/CAD Weekly Candle Chart
Past performance is not a reliable indicator of future results
Moving down to the daily timeframe, the price action shows USD/CAD reacting to the resistance zone, but the reaction has been cautious. We're starting to see negative divergence on the RSI from overbought territory, suggesting that momentum is weakening. However, despite this divergence, the pair hasn’t shown a sharp pullback, which indicates that the bulls still have a foothold. The upcoming rate decision could either fuel a breakout above the resistance or lead to a deeper retracement if market sentiment shifts.
USD/CAD Daily Candle Chart
Past performance is not a reliable indicator of future results
Zooming in on the hourly chart, we get an even more detailed view. The market’s response to the resistance zone has been a low-volatility pullback, lacking the aggressive selling one might expect at such a key level. This suggests that USD/CAD could still make another push higher, testing deeper into the resistance zone before Wednesday’s decision. With volatility likely to ramp up as the rate announcement nears, all eyes are on how the pair handles this crucial level.
USD/CAD Hourly Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
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EXPOSE ON MY CURRENT RUNNING TRADES For Educational Purpose OnlyHello guys, this is a quick update on my current running trades as of today, 21/10/2024. Trust me, you are going to learn one or two things from this video. I made a costly mistake in one of the trades. I hope I won't make such a mistake next time.
Love you All...
smart money concept i think the USDCAD will go up considering the following:
1. the trend
2.the liquidity and manipulation
3.the zone
180 pips potential sell on USDCADPrice is currently in a channel in the 4hrs timeframe as in my chart, if the channel holds around 1.382 we can see see the pair dropping to 1.364 zone giving around 180 pips profit...
"USD/CAD: Bearish Divergence Signals Potential Reversal"USD/CAD has been in a bullish trend with no significant price correction over the past 4 weeks. Now, bearish divergence indicates a potential correction. Plan to sell on the breakout of the last higher low for confirmation of a trend reversal.
Bearish drop?USD/CAD is reacting off the resistance level which is a pullback resistance and could drop from this level to our take profit.
Entry: 1.3849
Why we like it:
There is a pullback resistance level.
Stop loss: 1.3946
Why we like it:
There is a pullback resistance level.
Take profit: 1.3750
Why we like it:
There is a pullback support level that aligns with the 23.6% Fibonacci retracement.
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USDCAD H1 | Bearish Drop Based on the H1 chart analysis, we can see that the price has just reacted off our sell entry at 1.3833, which is an overlap resistance.
Our take profit will be at 1.3804, an overlap support level.
The stop loss will be placed at 1.3849, which is a swing high resistance level.
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USDCAD Bullish Momentum Continues: Watch Resistance at 1.387013Hello,
FX:USDCAD has experienced additional upward movement following last week’s bullish trend. Further bullish activity is anticipated until a strong resistance level is established. Exercise caution! The key resistance point to watch is 1.387013.
TradeWithTheTrend3344
USDCAD with two probabilities for 10/22/2024USDCAD with a high probability to make the decision for 10/22/2024 ✅️ :
🔸️If the price exceeds the green bar 🟩, with the bar closing in the hour above: there will be a high chance of entering a purchase as indicated in the chart, respecting the day, news and the stop loss.
🔸️If the price exceeds the red bar 🟥, with the bar closing in the hour below: there will be a high chance of entering a sale as indicated in the chart, respecting the day, news, and the stop loss.
A potential Entry opportunity on USDCADLet's kick start a new Trading day with this.
Trading details/signal provided in the chart i.e.
The Entry, SL & TP
Go in with your proper risk management
Revisión Histórica sobre compra USDCAD
Uptrend is identified in 30 Min.
Last Swing from London opening is evaluated.
We evaluate higher liquidity zone remaining from London zone.
Common zone of both previous points is denoted, possible buying zone.
A possible profit zone is estimated according to percentage extensions with Fibbo.
It is evident that the price is moving away from the zone of higher demand, heading to the previously exposed zone of the London Market.
There is a moment of return to the liquidity zone, once the breakout is confirmed, it was expected to place purchases up to the 1.68 Fibbo point.
During this trade we mainly use the liquidity tools Fixed Range Volume Profile and Anchored Volume Profile. .
These tools allow us to measure buy and sell positions not in terms of time, but in terms of price, which allows us to better analyze prices actively, and to identify areas of overbought or oversold positions, which will be exploitable at some point in the future due to the liquidation of remaining orders.
In addition to this, Fibbo is used to structurally analyze the movements and possible market returns to price.
USDCAD BEARISH??USDCAD seems to be at a premium price getting ready for sells, over the past weeks USDCAD have experienced major bullishness. Well it seems that the bullishness is coming to an end as USDCAD approaches key resistance, A major rejection confirms sells from that POI
USDCAD - Bear SentimentWe have caught lovely sell trades on USDCAD. Price is currently bearish. We are targeting 1.37880.
USDCAD sell analysis Hi dear friends how are you ?? I hope all is well Now we analyze that usdcad, as soon as we check on the monthly time frame, there is a very good sell divergence and if you look at the monthly, it is showing resistance on the double top header at the top, which is a good opportunity for sale
If you agree with my analysis please share your opinion below
Best of luck
Allah bless you
USD/CAD Buyers Push for Extended Control Amid Oil WeaknessTechnical Analysis
The USD/CAD pair remains in bullish territory, with buyers pushing the price higher amid a supportive backdrop of falling oil prices and expectations of a dovish BoC. A decisive move above 1.38190 could pave the way for further gains, while a break below 1.37970 would signal a shift in momentum. Market participants should stay alert to upcoming BoC policy announcements and U.S. economic data for cues on the next potential move.
Market Overview
On Monday, the USD/CAD pair continued to gain traction, driven primarily by two influential factors: a decline in oil prices and increased speculation that the Bank of Canada (BoC) may increase its pace of interest rate reductions.
USD/CAD "The Loonie" Bank Money Heist Plan on Bullish SideHola! My Dear Robbers / Money Makers & Losers, 🤑 💰
This is our master plan to Heist USD/CAD "The Loonie" Bank based on Thief Trading style Technical Analysis.. kindly please follow the plan I have mentioned in the chart focus on Long entry. Our target is Red Zone that is High risk Dangerous level, market is overbought / Consolidation / Trend Reversal / Trap at the level Bearish Robbers / Traders gain the strength. Be safe and be careful and Be rich.
Entry : Can be taken Anywhere, What I suggest you to Place Buy Limit Orders in 15mins Timeframe Recent / Nearest Swing Low
Stop Loss 🛑 : Recent Swing Low using 2H timeframe
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Warning : Fundamental Analysis news 📰 🗞️ comes against our robbery plan. our plan will be ruined smash the Stop Loss. Don't Enter the market at the news update.
Loot and escape on the target 🎯 Swing Traders Plz Book the partial sum of money and wait for next breakout of dynamic level / Order block, Once it is cleared we can continue our heist plan to next new target.
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USDCAD BUY trendExpecting this two trade to trigger later during the day maybe once London or NY open.
Overall trend is UPTREND.
You can check DXY and USDCAD have the similar movement in H4
