Financial News

USD/CAD long opportunity as the price approaches a key support level

By: Invezz
USD/CAD trading strategy
  • Buy/sell asset: Buy USD/CAD
  • Entry price: 1.34475
  • Stop loss: 1.33589
  • Leverage: 1x
  • Take profit 1: 1.35300
  • Take profit 2: 1.36200
  • Take profit 3: 1.37500
  • Timeframe: 1-2 weeks
  • Maximum profit: 2.2%
  • Maximum loss: 0.6%
USD/CAD chart and technical analysis

USD/CAD is an uptrend and the price closed above the previous high of 1.35450. Currently, the price is making a correction and will possibly retrace to the 1.34475 support level before making new highs. The price will likely continue its bullish rally from the 1.35475 support level.

I am recommending the 1.34474 support level for long entry as it is between 0.786 and 0.618 Fibonacci level. Moreover, the price had made long bullish candles and there is also a bullish order block around the same price which indicates an upward rally from that level. My recommended target for this trade is 1.37500.

USD/CAD fundamental analysis

Fundamentally, the price is likely to remain stable today as there is no high-impact news on the US dollar and Canadian dollar.

However, the price might witness volatility after the CPI data on the Canadian dollar is published this Tuesday. If the data turns out positive the price of USD/CAD will drop conversely, if the data turns out negative the price of USD/CAD will go up.

US dollar to Canadian dollar trade idea takeaways
  • USD/CAD is in an uptrend and the price closed above the previous high of 1.35450.
  • The price of USD/CAD will possibly retest the 1.37500 resistance level in the coming days.
  • Multiple take-profit levels have been added to secure profit along the way.
  • The risk-to-reward ratio on this trade is 1:3.4.
  • The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
  • Good luck!

The post USD/CAD long opportunity as the price approaches a key support level appeared first on Invezz

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