Forex Marketz Daily Forex News – Fully Markets Update
Points to consider about the Canadian Dollar:
- The US Dollar is poised to break its near-term downtrend against the Canadian Loonie.
- Long USD trade now in play for push above 1.34.
- Trade Strategy: Long USD @ 1.3307.
The USD/CAD Forex market is looking to resume its long-term uptrend after it largest daily advance in seven months. Price action, if you look at the below daily MT 4 chart, has broken a series of lower highs and lows. These have been guiding the pullback in this Forex market since late January. This is an indicator that the US Dollar bulls are coming back out as the dominant force.
Canadian Dollar Technical Analysis
Let’s discuss today’s Canadian Dollar technical analysis using the above MT 4 daily chart. The first upside barrier is at 1.3450. A daily close above this first technical resistance level opens the door to challenge the next upside barrier that lines up at 1.3585.
The alternative daily technical analysis, notes the first layer of support lining up at 1.3285. A break below this first downside barrier challenges the next technical support level that lines up at 1.3181.
Trade Strategy
Despite a lot of headline risk and uncertainty regarding the lack of clarity from the new US President and his fiscal policy, the risk to reward parameters allow for a long US Dollar trade at this time in this Forex market. I have placed a long USD trade at 1.3307. The first target is at 1.3452. The initial stop loss order is at 1.3285 and will activate on a daily closing basis. If I meet the first objective of this trade, I will book half the profits and move the stop loss to breakeven.
