Fuad Karimov's daily comment: USD/CAD chart review
With the US-China trade tensions affecting the rise in crude prices, the USD/CAD pair consolidates around 1.3440 ahead of today’s markets opening. The pair was unable to overcome the 1.3505 barrier for almost a month now. The uncertainty over the US-China trade dispute is the key factor containing — and likely for a longer time — the move of greenback and markets in general.
On Thursday, manufacturing shipments and ADP employment change data from Canada will be the main headlines possibly giving a new impulse to USD/CAD movement.
USD/CAD H4 chart
The 4-hour chart does not give much hint on further direction, however, plenty of support clusters below current price suggests that there are few convenient bounce trades opportunities.
The important dual support cluster is at 1.3390-1.3405 and this where we like to place our Buy limit orders. This type of trade always rely on the split exposure, therefore, we will add to the position at 1.3325-1.3350 support area and the last bastion of our long trade is at 1.3270. Price is likely to go downside and reverse from one or several of those key supports and this scenario adds to our trade edge.
Resistance levels to watch are 1.3455 and 1.3505 which will further contain upside move. If price breaks above, this will invalidate our trade scenario.
Have a nice day.
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