Forex trading Analysis :USD CAD

USD CAD (US Dollar / Canadian Dollar)

The US Dollar vs. the Canadian Dollar is a very popular currency pair due to the extremely large amount of cross border trading that occurs between the U.S. and Canada. The CAD is considered to be a commodity currency because of the large amount of natural resources, especially oil, that are mined and exported to southern neighbors. The USDCAD is one of the most traded currency pairs in the world.
USDCAD — chart and live rate U.S. Dollar/Canadian Dollar 
USDCAD is currently trading lower, specifically at the 1.3126 level after a probable top had been posted some days before the end of the old year. We are talking about sub-wave C of B or II. That said, if that is the case then more weakness should follow in weeks ahead within higher degree wave C or III. A breach beneath the lower corrective channel line and beneath the 1.3069 level would indicate more weakness to follow.forextradinganalysis

Downward trend is strong.

Assumingly, wave C of the higher level in the downward trend continues forming. Locally, the third wave iii of C seems to be forming, within which an upward correction (ii) has finished. If the assumption is correct, the pair is expected to continue falling in wave (iii) towards the level of 1.2900. Critical for this scenario is the level of 1.3207.

Main scenario

Sell the pair below the level of 1.3207 with the target at 1.2900.

Alternative scenario

The breakout and consolidation above the level of 1.3207 would allow the pair to grow to 1.3300.

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.3148
Take Profit 1.2900
Stop Loss 1.3230
Key Levels 1.2900, 1.3207, 1.3300

Alternative scenario

Recommendation BUY STOP
Entry Point 1.3210
Take Profit 1.3300
Stop Loss 1.3150
Key Levels 1.2900, 1.3207, 1.3300
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