Categories: Technical Analysis

USDCAD Shows Signs of Important Reversal

The US Dollar continued to enjoy nice gains against a basket of currencies, including the Canadian Dollar. The USDCAD pair surged above the 1.2450 resistance area, and might spike one more time before it reverses. There was a monster resistance at 1.2450, which was breached earlier. If the mentioned break was a false one, then we could witness a nice bearish reversal in the short term. There is a crucial event in Canada, as the BOC interest rate decision is lined up, which might ignite swing moves in USDCAD.

Technical Analysis

Daily – Critical bearish trend line on the daily chart, plus a bearish divergence.

Daily – Monster resistance around 1.2460-1.2500.

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Entry:

H1 – We can enter a sell trade for the USDCAD pair once the pair fails below 1.2440, settles below it and retest in two waves.

Target 1: 1.2340
Target 2: 1.2310
Stop Loss: A 4H close back above the 1.2450 resistance area.

Video Explanation:

Yours,
Vladimir

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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.