USDCAD - BUY - 4th March 2021




USDCAD - BUY - 4th March 2021 (Closed)


Good morning team,

This morning we are taking a look at the USDCAD. Over night the market ha moved into a risk off sentiment with the commodity related currencies moving lower (AUD, NZD and CAD), and safe haven currencies gaining strength (USD and JPY). US equities have also declined further. Keep in mind the Biden administration is preparing a number of large tax hikes across corporate America which may put further pressure on the market when paired with rising interest rates and inflation.

USDCAD – Daily Charts

The USDCAD is setting up a very nice descending wedge formation, any possible breakout could be explosive.

USDCAD – 1 Hour Charts

The short term time frame is setting up a technical bullish structure. We can see a potential inverted head and shoulders formation along with a bull flag breakout. We are looking to buy the pair expecting a break above the neck line of 1.2750.

Trade Setup: BUY Market execution, current price 1.2654, stop loss 1.2590 and take profit 1.2844. 

Stop loss: 64 pips

Take profit: 190 pips

Trade Setup
BUY Market Execution

Entry
1.2654

Take Profit
1.2844

Stop Loss
1.2590