Price of the USDCAD has been on an upward trend since October 1st. We have been able to use a nice clear trend line (black) that shows a good upward trend. This was only broken once, after which it was immediately corrected. Currently the price is in a Support/Resistance zone (orange). This zone is respected in:
- November 2016 - December 2016 - March 2017
The S/R zone was exceeded once and reached the major resistance zone (red). It happened in the months of April and May. Because the price has increased considerably in the last days, I expect that a retracement will arise. There is also currently a fundamental panic around the American economy:
- President Trump wants the resignation of FED chairman Jerome Powell. - Dow Jones has made a 7% decline last week. This was the worst week of the past 10 years.
I believe this will have an impact in the USD currency. This in combination with the orange S/R zone is a good trading opportunity to make a profit. There are 2 possible situations: The first is that the price rises above the S/R zone because the dismissal has no major impact on the American economy. The second is that price drops so bad that the trend line breaks and a reversal trend arises.
We will have to wait for Sunday evening to see the result. I expect a short gap at the opening of the market through this weekend news.
עסקה פעילה
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The price of the USDCAD broke the trendline. We will now wait for a pullback of the price. If this appears we will take a short position with a top target price (TP) of 1.33250