Home Forex Market Analysis Forex Signals USDCAD – Watch this Key Support

USDCAD – Watch this Key Support

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Description

The USDCAD pair in its hourly chart shows the test of the 1.4375 level as short-term support, the three-times touch realized on the current trading week makes us suspect that the Loonie could see more drops soon.

For the short-term, we expect a limited bounce to 1.4426 from where the price could find fresh sellers waiting to activate their short positions with a potential profit target at 1,4156.

On the other hand, the RSI oscillator that moves below level 40 gives us the clue of the bearish bias, which supports our sell-side outlook.

The invalidation level of our bearish scenario locates at 1.4559.

Chart

Trading Plan Summary

  • Entry Level: 1.4426
  • Protective Stop: 1.4559
  • Profit Target: 1.4156
  • Risk/Reward Ratio: 2.02
  • Position Size: 0.01 lot per $1,000 in trading account.

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