USDCAD had dropped below its 200 day MA with tensions in middle east giving a boost to OIL. The stand-off between US China on the trade talk keeps the pressure on US Dollar. This USDCAD weekly trading analysis is valid for the trading period between 01 to 05 July 2019.
USDCAD has found support at the 38.2 Fibonacci level of the move from the low of 2017 to high of 2018. This support zone was tested earlier in January 2019 and good buying support was seen. Price has again bounce off this zone and presents a good low risk trading opportunity with excellent risk reward ratio.
Price moves on USDCAD is largely driven by the price action of OIL – the price chart further adds confidence to our analysis. Although OIL price has moved above a cluster of moving averages, the 61.8 Fibonacci level and a major trend line may provide resistance and cap the price.
With the US-China trade talks back on track and NFP expected to rebound, traders can look for low risk LONG positions on USDCAD.
Recommendation for this week:
Long USDCAD @ 1.3070 (after a H1 reversal bar) with Stoploss below 1.2970 for Targets 1.3400.