Forex Marketz Daily Forex News – Fully Markets Update
USD/CAD (1.3310)
Three points to consider
- US Dollar gains strength in this Forex market
- Traders are now targeting the 1.33 pivot and higher
- Trade Strategy: Long USD trade in play at 1.3248
The USD/CAD Forex market is now pushing higher once again. The US Dollar has now broken the 1.32 pivot as buyers are eying resistance levels above 1.33. The US Dollar is seeing a divergence against its main Forex trading partners as it has been losing value, but is now seeing strength against the commodity currencies. Please refer to the below USD/CAD daily MT 4 chart for today’s technical analysis.
Technical Analysis
Let’s discuss today’s USD/CAD technical analysis. There is near term resistance lining up at 1.3365. A daily close above this level challenges the technical resistance level lining up at 1.3495. The alternative USD/CAD technical analysis, should the US Dollar reverse course, thus moving this Forex market lower, notes technical support at 1.3208. A break below this technical level challenges the technical support lining up at 1.3110.
Trade Strategy
Let’s now discuss today’s USD/CAD trade strategy. I like the risk to reward conditions for a long Dollar trade. I have entered this long USD trade at 1.3248. My initial target is at 1.3365. A have put a stop loss order at 1.3208. It will go active should the USD/CAD fall through this support level. After booking 50 percent of this trade, I will move the stop loss to break even at 1.3248.
There is some event risk on today’s economic calendar coming out of the United States. The biggest economic data release to watch is the durable goods orders. That will come out in the afternoon and we are expecting a contraction of 0.4 percent. I will monitor this release but it should not affect the short USD trade in play.
