USDCAD has a lot of upside potential

The Canadian dollar was seen trading higher against the US dollar. However, it looks like the USDCAD pair has managed to gain buyers, and is preparing the ground to one more leg higher. The US dollar might gain traction in the coming session. So, I think we should be looking for buying opportunities in the short term.

There was an important bearish trend line on the 1 hour chart for the USDCAD pair. The mentioned trend line was broken earlier during the Asian session, which can provide a reason for buyers to take the pair higher. So, if the pair dips slightly from the current levels and trades closer to the highlighted trend line, then we can enter into a buy trade.

Initial target should be around the 1.0940 level, and final target could be around the 1.0980 level. Stop should be below the 1.0860 level.

Reviewing yesterday’s events and trades
Yesterday, there was no major economic release during the New York session in the US. So, the Forex market was mostly seen trading in a range. However, there were a couple of releases during the Asian session, including the New Zealand PPI data, New Zealand inflation expectations and the Reserve Bank of Australia (RBA) Monetary Policy Meeting Minutes. The NZDUSD was seen trading lower and the AUDUSD pair traded a touch higher, as the New Zealand PPI figures missed the expectation.

Fundamental Outlook for the day
Today, the US CPI, building permits and housing starts data will be released in the New York session. All these are important releases and can have a lot of impact on the US dollar. So, we need to keep a close eye on these events and try to avoid a bad trade. Moreover, the Japanese imports, exports and trade balance data will be published during the next Asian session, which can cause some moves in the yen pairs. The US dollar and the Japanese yen look set to ignite volatility in the market moving ahead.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: USDJPY, EURUSD, GBPCHF, AUDCAD, AUDUSD, NZDUSD, GBPUSD and EURGBP.
Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!

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