The USD/CAD weekly, below, shows a possible bottoming formation on this pair. Although there was no immediate upside follow thru after THIS large weekly hammer was formed a couple of weeks ago, the selling pressure was not very strong either last week:
If the above observation is correct, then price could now rip higher to take out the bears’ stops, with some of these orders likely to be resting above Friday’s high and others above the prior week’s range.
The USD/CAD has been on of my favourite pairs to trade short but it looks like the tide is now turning. The private group made a few really good trades on the USD/CAD recently, such as this one:
Another USD/CAD trade that worked very well for the private group was this one:
But now that the tide is potentially turning for the US dollar, shorting the USD/CAD may no longer work. So, going forward, it looks like I will be actively looking for bullish setups on this pair as the existing long-term bear trend appears to be nearing is end, if it hasn’t already ended.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.