USDCAD Possible Buy trade

Discussion in 'Forex' started by ProForex, Mar 1, 2022.

  1. ProForex

    ProForex

    Looking out for a possible buy trade on this pair on the 1H charts.

    On the technical front, seeing a nice Support Resistance area from where the markets have bounced to the north. If we get a decent retrace coupled with a strong buy signal it would be a nice trade.

    Good R:R on this with approx 90pips to first target or 130 pips to second target. Could be a good trade to scale out on while running trade. Take some profit on first target and let the rest run.

    On the fundamental front we are keeping an eye on President Biden's speech at 3pm NZST for the US Dollar sentiments & on Fed Chair Powell to Testify. For the Canadian Dollar we will keen am eye on Bank of Canada rate statement & Overnight rate coming up in the near future.

    [​IMG]
     
    Last edited: Mar 1, 2022
  2. maxinger

    maxinger

    my comment for this trade is quite similar to my comment on your AUDNZD trade.

    notice that EUR & GBP are moving because the bombs are dropping near them.
    AUD CAD moved just a little
     
    Last edited: Mar 1, 2022
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  3. tiddlywinks

    tiddlywinks

    I have been trading CAD (6C) futures (long and short) with a short-side bias for the past month or so. You will note on a daily chart, the 6C futures have been trading in a range during this time. I have done well, although no sustained short has arrived, yet!
     
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  4. I agree with this, basically have some sort of a bear flag type thing on the daily. However, I think if interest rates move favorably that would be good for USD bulls.

    upload_2022-3-1_20-21-49.png
     
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  5. LuckyMac

    LuckyMac

    Fundamentals definitely signal a buy as USD will still be used as a safe haven, CAD is linked to oil and will be volatile with price fluctuations. On a technical side there is a low resistance run to the upside with liquidity sitting above them highs. Its as solid as you will get in this market at the min IMO
     
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  6. I don't think it is anymore. The Canadian government is anti Canadian oil and would rather buy oil from Russia and Saudi Arabia than develop its own resources.
     
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  7. ProForex

    ProForex

    No Significant reaction... did get a bullish signal however we were only 1 leg down.
    No entry on this trade!

    upload_2022-3-3_7-45-51.png
     
  8. RE: CAD linked to oil.

    • Today oil is up 8%.
    • The CAD had a modest gain of about 0.70% due to The Bank of Canada raising interest rates. Oil had no affect on the CAD.
    • Compare the CAD 1-year chart to Oil's 1-year chart.
     
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  9. LuckyMac

    LuckyMac

    although that maybe true and shift that the Canadian government are pursuing Canada makes a lot from oil nearly 5% of their economy and some regions rely heavily nearly 25% although in the future it may not be linked to oil as much i think it still has a tether in this climate
     
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