USD/CAD — The trade that could be missed

(USDCAD — 1.11 … 1.12?)

There are opportunities every hour of the day to trade — often in either direction, providing that the time, item, and price are picked correctly. (And of course the right direction!)

Here is an active currency pair — USDCAD, presently trading at around 1.116. Both currencies are popular, and the pair is a particularly curious one for many Canadians (coming into the winter weather in the northen hinterland). Let’s look at the 5 minute chart:

Already at 14:20 the pair was peaking and proceeding to recover the ground. Looking at the M1 chart you would not see the movement — it has be cycling around (up and down) for the last while. To illustrate the trade that would be missed, look at the four hour chart as below:

 

 

 

Notice that the pair appear for the day to be somewhat stable! So, many traders would look to the previous day and see that the pair is not as exciting at the 19th of September when it dipped to around 1.091. Many traders would look to the 26th of September also and see that the currency has been appearing stable around the range of 1.109-1.111. Yet, the opportunity shows nicely on the M5 chart. Look for the potential bottom point around 1.115. Point of stability is around there, and the resistance could be as high as 1.12. How would you play the pair?

If you wait too long you can miss it. As writing the trend reversed to now:

 

Traders are encouraged to look at a range of charts to best outline their strategy.