USDCAD toughest pair of FX to trade technically/fundamentally
Most important thing for a forex trader is to find out whether current price action is a trend OR correction. A trader may use momentum indicator or read candlesticks to gauge the momentum. Taking trades in the direction of prevailing bigger trends is always a good idea. Using any of the methods a trader might be scratching his head when applying on OIL effected pair USDCAD. We have a few findings about this pair recently:-
1- Pair has tried to break support of 1.3002 multiple times since sep 2016 but no clear break out.
2- A broadening wedge, the most difficult technical setup to trade, highlighted in black lines.
3- Oil oscillating in a well defined range of 50-55 $/bbl.
4- A False break-out on 1-31-2017, stopped out sellers who might be trading H&S reversal. WHy?? you may see clearly in RSI divergence.
Watch this pair with learning perspective but don't risk your capital until a clean break out in either direction confirmed by RSI .
A bearish break of 1.3002 may not provide a valid trading range as next supp is @ 1.2822. We are neutral on this pair at current levels but fundamentally would like to take LONG position once produced.
Have a great weekend....
1- Pair has tried to break support of 1.3002 multiple times since sep 2016 but no clear break out.
2- A broadening wedge, the most difficult technical setup to trade, highlighted in black lines.
3- Oil oscillating in a well defined range of 50-55 $/bbl.
4- A False break-out on 1-31-2017, stopped out sellers who might be trading H&S reversal. WHy?? you may see clearly in RSI divergence.
Watch this pair with learning perspective but don't risk your capital until a clean break out in either direction confirmed by RSI .
A bearish break of 1.3002 may not provide a valid trading range as next supp is @ 1.2822. We are neutral on this pair at current levels but fundamentally would like to take LONG position once produced.
Have a great weekend....