Usd/Cad: Upcoming Entry

Yesterday I shared a possible trade setup on the Eur/Usd, today I thought I would write about the Usd/Cad. The price in this pair has been trending up and is about to break the downward trendline. If this trendline is broken on the daily chart that will be a good entry point long for the Usd/Cad.

The current resistance level of 1.0820 was tested at the end of the day Friday and the next level of resistance will be 1.000 level. If we see the price open above the or move above the 1.0820 look for the price to move towards the 1.000 resistance level.

Daily Chart


This pair has suffered a long down turn as the Dollar has been getting weaker for some time. The Adam Kritzer points out on the Forex Blog that the Canadian Dollar and US Dollar got close to being one to one exhange rate. That post also states that the Bank of Canada may use government intervention to impact the currency.

This could be a turning point for the short term. Watch the trendline break and look for an entry to the upside. On the 1 hr chart there is an ascending triangle and the price broke through the top at the end of the trading day on Friday which indicates that November could be a strong month for the Usd/Cad.

1 Hr chart


To sum it up: If the price breaks the trendline enter long.