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:
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