USDCAD – SELL – Double Trade – 11th Feb

USDCAD – SELL – Double Trade – 11th Feb (Closed)

Good morning Forex Kings,

We have a busy week coming up and our focus will turn to the NZD tomorrow.

We are firstly looking at the USDCAD as it approaches a major resistance zone, as well as extreme overbought conditions.

The USD has rallied against all major currencies as the safe haven demand for USD increased. The CAD has suffered a 4-5 week loosing streak as crude oil prices reached yearly lows. The corona-virus has resulted in a decreased demand of crude oil as the manufacturing industry is on lock down. However, a number of companies are now returning to work as the 14 day quarantine period comes to an end.

This week we see a large amount of data coming from the US, the DXY (USD INDEX) is also in extreme overbought conditions suggesting we may see a pull back on the USD soon.

Technical Analysis

USDCAD – Daily Time Frame

The USDCAD is now at a resistance level of 1.3330, the next major zone can be found at 1.3380 which will be our second entry point.

Technical indicators are suggesting overbought conditions.

USDCAD – 4 Hour Time Frame

The strategy here is to attack the peak, allowing some drawdown if it breaks to the next resistance level.

Trade Setup 1: SELL USDCAD (market order 1.3315): Stop loss 1.3450, take profit: 1.3200

Stop loss:  135 PIPS

Take Profit: 115 PIPS

Trade Setup 2: SELL LIMIT – 1.3380, stop loss 1.3450, take profit 1.3200

Stop loss: 70 PIPS

Take Profit: 180 PIPS

Trade Setup
SELL - Double Trade

Entry
1.3315

Take Profit
1.3200

Stop Loss
1.3450