It’s been awhile since I posted about the forex market. But guess what? I’m back in the FX trading arena! So as I was scanning through the charts of the major currency, the USDCAD got my attention in a snap!
USDCAD’s recent price action as can be seen in its 4-hour chart above is one of the bread and butter set-ups that I often trade. You see, the US dollar has just rallied against the Canadian dollar or the loonie as some would call it after the USDCAD pair hit a low of 0.9454 last April 21. Notice, however, that its rise was halted by the previous support at around the 0.9550 area. In my opinion, the Canadian dollar appreciate some more against the USD in the near future due to a couple of technical factors. Aside from the previous support-turned-resistance that is blocking the USD’s rise, conditions are also overbought as indicated by the stochastics. Moreover, a presence of a hidden bearish divergence, where the price registers lower lows and the stochastics mark higher highs, suggests a move lower. If it does, then it could revisit its previous low 0.9454.