The pair Canadian dollar with the US dollar (USD/CAD) has been moving in a slightly upward channel for several months. Last Friday, the price reached the level of 1.3077, forming a double peak with the May maximum.
Today’s trading (Monday, 20.06) is within the range of the Friday candle, forming an inside bar formation. Due to the Monday holiday in the USA and closed markets, there is no indication that anything will change by the end of the day.
The Canadian dollar is heavily dependent on oil prices, as Canada is a significant oil exporter. If there are sharp movements in oil, it will undoubtedly have an impact on this currency pair and when trading it should be taken into account.
On the H4 chart an inside bar formation appeared, the price has already broken downwards, the next candle is also bearish. On the MACD oscillator a downward divergence was formed. Analysing the layout on the chart in terms of the PA+MACD strategy, it can be concluded that all three assumptions have been met. Probability of further falls is high.
I will discuss more details on this pair and several other financial instruments during Tuesday’s live trading at 08:00 GMT+1.
LIVE TRADING SESSIONS- FREE ENTRY
I invite you to my – Tuesday’s, 21th of June at 08:00-09:00 GMT +1 (London time) live trading session here: https://www.xm.com/live-player/basic
The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
More current analysis on the group : Trade with Dargo
In our Facebook group, which you can join anytime: https://www.facebook.com/groups/328412937935363/ you will find 5 simple strategies on which my trading is based. There, every day we post fresh analyses of currency pairs and commodities. You can also visit my channel where I post my trading ideas: https://t.me/TradewithDargo