USDCAD: Bounce or breakout?

Right now the Canadian dollar is trading at an important support level: low created the first days of June plus it was an important resistance level from August to September last year. But, hot is this going to help us take a better trading decision? Ok, first let’s take a look at the next chart:

USDCAD
USDCAD

When we see the market trading at an important long term support or resistance level, it usually trades in a short term range, the short term range for the USDCAD right now is between 1.0877 and 1.0789. So I will wait for a breakout of wither side and look for trading opportunities in the same direction.

My Trading Plan:

If the USDCAD breaks 1.0877 for the upside, I will start to look for long trading opportunities targeting next LT resistance level placed at 1.1197.

If the market breaks 1.0789 for the downside, I will look for short trading opportunities targeting next LT support level around 1.0318

Good luck

Raul Lopez

Canadian dollar, USDCAD Analysis


Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .