Intraday Market Analysis: Analyzing the Dips in USDCAD

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USDCAD Intraday Strategy

USDCAD has painted a reversed Head-And-Shoulders (H&S) and was able to break above the neckline at 1.3071, paving the way for further gains. By paying a closer attention to USDCAD intraday trend you may see the chart is painting higher highs and higher lows since the formation of the right-hand shoulder.

USDCAD 4hr Chart

Please click on the chart to enlarge:

USDCAD 4hr Chart 26/10/15

The recent dip appears to be corrective before a resumption of the established uptrend. The main support is noted via the 21 Moving Average (MA, in purple). If we set the 21MA, 1.3120 may act as a strong support and has the potential of creating the 4th bullish wave in USDCAD. By the book a bearish breakout below 1.3120 may suggest further weakness towards 1.3071 there is a fair possibility to suspect such a breakout mat evolve into a false breakout.

If our intraday analysis materialises in the 4hr chart the bulls may strive to carry USDCAD towards 1.3215, which is our target for the dip-buying strategy. We should highlight that we may be in front of a broader uptrend in USDCAD but at the time of this writing we are focusing on the near-term projection. We are unable to determine if the uptrend will be triggered by a weak Canadian Dollar (CAD) or a general weakness in the commodity currencies. We have no technical evidence at the time of this writing to suggest the uptrend may be triggered as a result of a strong US Dollar (USD).

26/10/15 UPDATE: USDCAD corrective gains began off the 21MA as we noted in the intraday strategy.

Please click on the chart to enlarge:

USDCAD 4hr Chart 26/10/15

27/10/15 UPDATE: USCAD acquired our bullish target at 1.3215 as we outlined in our intraday strategy.

Please click on the chart to enlarge:

USDCAD 4hr Chart 27/10/15

It appears reports the US Government would sell approximately 50 million barrels of crude oil from its emergency reserves and add to the funds to the Federal budget forced crude oil lower, which lead to a weak CAD in the Forex market.

As USDCAD intraday strategy has acquired our target this page can now be accessed by all traders. Relevant intraday strategies are restricted to members only. We have been providing trade alerts in the Forex market since May 2014.

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