Categories: Technical Analysis

Buying dips offers good risk/reward in USDCAD (extract from Weekly Market Forecast 14th of September 2014)

The US dollar was seen correcting lower during this past week against the Canadian dollar. However, the USDCAD pair found buyers around an important trend line on the weekly chart, and after that the pair also managed to clear an important resistance area around the 1.10 levels. So, I think the pair might continue trading higher in the short term, and any dips should present us a nice buying opportunity.

There is a strong support area around the 1.1020-00 area on the hourly chart of the USDCAD pair. There is also a bullish trend line, which coincides with the mentioned support area. So, if the pair moves a bit lower from the current levels towards the mentioned support area, makes a stop and forms a bullish divergence, then we can enter into a buy trade.

Initial target should be around the 1.1090 level, and final target could be around the 1.1120 level. Stop should be placed below the 1.0940 level.

Major events scheduled in the upcoming week
There was finally some relief for the Euro buyers, as the EURUSD pair managed to settle around the 1.2900 level. Moreover, the Euro was also seen trading higher against the Australian dollar and the New Zealand dollar. The US dollar performed best against the Japanese yen and the Australian dollar during this past week. The AUDUSD pair traded below the 0.9100 level and the USDJPY pair blasted above the 107.00 level. The US retail sales was the only major economic release during this past, which was mostly according to the market’s forecast.

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Let us look at all major events lined up in the upcoming week.
Sunday – Australia’s New motor vehicle sales data.

Monday – Swiss PPI data, US industrial production data and NY empire state manufacturing index.

Tuesday – UK CPI data, German ZEW economic sentiment, US PPI data and New Zealand’s GDP data.

Wednesday –UK employment data, Euro zone CPI, US CPI and Japanese trade balance data.

Thursday – UK retail sales data, US housing starts figure, US initial jobless claims and Philadelphia fed manufacturing index.

Friday –German PPI, Canadian CPI and Canadian wholesale sales data.

This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPCHF, EURGBP, USDJPY, EURJPY, GBPJPY, AUDUSD, NZDUSD, AUDNZD, EURAUD, USDCAD and AUDCAD.
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Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.