Daily Price Action

USDCAD: Shorts Favored Below 1.3380


A few days ago on January 3rd, I wrote about a USDCAD short opportunity.

At the time, the pair was trading at 1.3513. It was also hours away from closing back inside an ascending channel that began in early October.

Although USDCAD didn’t retest the 1.3565 area as new resistance, it is down more than 200 pips since my last commentary.

It also closed below another key area yesterday.

The price action between November 20th and December 10th of last year indicates that 1.3315 is a price of some significance.

Yesterday’s 1.3299 close means that 1.3315 should begin to serve as new resistance.

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The 1.3315 area isn’t that far below former channel support. That area is closer to 1.3360.

All in all, I see further losses for USDCAD.

As for key support, the 1.3060 region has a lot going for it. It served as a pivot between mid-September and early November of last year.

We also have channel support just below 1.3060 near 1.3000. Either area could trigger an influx in buying pressure.

However, keep in mind we have a Bank of Canada rate decision and statement on Wednesday at 10 am EST.

An increase in volatility at this time is all but guaranteed.

As such, it may be best to wait until after tomorrow’s BoC decision to avoid the volatility that is likely to ensue.

But as long as USDCAD remains below former channel support near 1.3360/80, I will remain bearish with a target of 1.3060.

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USDCAD ascending channel on the daily time frame

About the Author Justin Bennett

Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...

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  • Liam says:

    When you say your going to remain bearish, are you actually in a trade? Because I dont see any price action signals.
    Any help would be appreciated

    • A bearish bias. But I also don’t always wait for a price action signal.

      • Albert Enstein says:

        Just bells and whistles empty talk…Canada is in deep shit… I live here and see USD/CAD over 1.50 soon.

        • And I live in the U.S. That doesn’t mean I “know” where the USD is going (although I have a pretty good idea).

          Long-term bullish trends have pullbacks too, and they’re often considerable.

        • Batsaikhan Radnaabazar says:

          I live here in Asia and USD/JPY will down soon

      • thymesh says:

        Great Analysis with your price forecasts. Am glad to be learning from you. Many thanks.

      • Liam says:

        If you dont wait for price action what else are you waiting for?

  • Sam says:

    Happy New Year Mr Spot On!

    Hopefully that rate decision will take, the price action back to the Mean, which in turn will present an opportunity to go short.

    Thank you Mr Spot On all the best for 2019.

  • Itumeleng says:

    Truly speaking sir u are really great please help me to be successful sir I really need your help

  • ayodele says:

    I have watch your video on making consistent profit SEVERAL times and have try it even till NOW,but,the result is not positive though I use 4hr,please what is wrong,why is it not working on 4hr as daily timeframe you used.

    • That’s impossible for me to answer without knowing more about how you’re trading.

  • Keoagile says:

    Justin Bennett thank you very much more blessings to you this year and beyond

  • simon says:

    Justin, NZU/USD went low today…are you still bullish bias?

  • Ibukunoluwa says:

    Your signals are always on point.

  • Jenerali says:

    thank you justin

  • paschal jacob malongo says:

    Bro u too good am glad to be part of you

  • Vettis K1 says:

    I’m going to navigate that resistance area in coming day, but I’ll wait for the dust to settle. Thank you J for everything.

  • Sam Suresh says:

    Hi Justin. I have been following your posts and benefited a lot through your analysis. My trades on demo account CADJPY and USDCAD exactly worked as analysed. I am so relaxed after converting to Daily Chart and no more gluing to screen for long hours. I am looking into EURAUD and would like to hear your comments on the same.

  • PHAM BINH LUU says:

    So after all BoC decision will decide which way the pair will go, right. Thank you!

  • Rowelto says:

    I prefer to hear what caused the movement technically to just explain plainly as stated.

  • POLA P says:

    “As such, it may be best to wait until after tomorrow’s BoC decision to avoid the volatility that is likely to ensue.”

    streets are not for every body that’s why the have got side lines…..

  • Prasanna says:

    Thanks sir ;
    Your alost all trades r perfectrl except recent one of EURJPY SHORT.What r your views on EURJPY?

  • francis says:

    thank you Justin, your analysis has been quite helpful.

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