Forex Marketz Daily Forex News – Fully Markets Update
Looking at the USD/CAD Forex market this morning, the US Dollar seems to have formed a top below the 1.26 pivot. There is a Bearish Candlestick pattern just below 1.26 then fall lower.
Technical Analysis
There is near term support lining up at the end of a congestion zone. This area is at 1.2398 to 1.2412. A daily close below this level will challenge the technical support at 1.2320. The alternative view, should the USD/CAD push higher, has technical resistance at 1.2470. A break above this resistance level challenges the technical resistance at 1.2564, which is also the June high.
Trade Strategy
Today’s trade strategy is fairly simple from a technical angle. Price action is wedged between a technical support and resistance level. This means taking a long USD trade is premature from a risk to reward perspective. There are also no strong bearish reversal cues, we need something more than a bearish engulfing, to take a short USD trade. For now I will opt to stand aside and monitor my charts for a better trade to come along.