#036: USD/CAD Long Investment Opportunity
In recent days, the USD/CAD cross has shown a consolidation phase within a medium-term structure characterized by progressively higher lows and a gradual absorption of supply in the lower part of the range. Hello, I'm Forex Trader Andrea Russo, an independent trader and prop trader with $200,000 in capital under management. Thank you in advance for your time.
Observing the price behavior in the last 8-hour candles, we see how buyers have resolutely defended the support zone, repelling any attempts to decline with increasing volume and clear wicks below key levels.
This type of price action, typical of accumulation environments, suggests that strong hands are gradually building long positions in anticipation of a new bullish leg.
On a technical level, the break of intermediate micro-resistance, accompanied by growing momentum on the US dollar and a weakening Canadian dollar, increases the likelihood of an extension into higher liquidity areas.
This movement would be consistent with the rebalancing dynamic of order flow, which in recent sessions has shown a marked reduction in short-term pressure.
At the intermarket level, the weakening energy market continues to be a drag on the Canadian currency, historically correlated with oil prices.
At the same time, the stability of US yields and still-tight interest rate expectations keep the greenback in a position of relative strength.
In summary, the overall picture shows a favorable environment for a continuation of the bullish movement, provided the price maintains its current support structure and confirms solid closes above minor resistance levels.
