USDCAD: A 900-Pip Opportunity in 2023

by Justin Bennett  · 

March 24, 2023

by Justin Bennett  · 

March 24, 2023

by Justin Bennett  · 

March 24, 2023

I’ve discussed USDCAD a lot in recent months.

First, we caught the bounce from 1.3300 support in early February.

Then came the breakout from the October trend line on February 22nd, something we discussed at length in the Discord group.

There was even a smaller consolidation pattern that developed in early March that triggered an aggressive move toward 1.3880.

So there have been plenty of opportunities to trade USDCAD.

The latest trade came on this week’s retest of 1.3660 support, another level I’ve mentioned on this website.

I entered a long position at 1.3664 on March 20th, which I announced in the member’s Discord group.

That position is well in profit, but I don’t think USDCAD bulls are done yet.

The target of this latest breakout is 1.4000, which is the October 13th high.

However, remember that 1.3880 will likely attract selling pressure, given its significance on the daily time frame since April 2020.

Those are my near-term targets for USDCAD only.

I still think we see much higher from the pair, potentially another +900 pips from current levels to tag the multi-year range highs.

USDCAD multi-year range
USDCAD 2-week time frame

A move to 1.4680 could take weeks or even months, but it’s well within reach later this year.

Another important factor when trading USDCAD is the US Dollar Index (DXY).

Although less influential than with a pair like EURUSD, the dollar index plays a critical role when trading any major currency pair.

On that note, the DXY reclaimed the 102.60 level that I wrote about on Thursday.

DXY pin bar
DXY daily time frame

We saw the DXY carve a bullish pin bar on Thursday after reclaiming 102.60, which triggered today’s dollar rally.

We also discussed this on Thursday in Discord as the DXY was reclaiming the key area on the 4-hour time frame.

That said, DXY 103.50 will be a significant retest next week.

It’s the yearly open for the dollar index, so a bullish reclaim is imperative for further dollar strength.

As we head into next week, I think USDCAD pullbacks are buying opportunities toward 1.3880 and 1.4000.

One level to watch is 1.3730/40 next week.

It served as resistance all week but will flip to support with a daily close above.

Join us in Discord to see exactly how I’m trading USDCAD and watch today’s members-only video on markets like DXY, USDCAD, EURUSD, and GBPUSD.

USDCAD potential breakout
USDCAD daily time frame

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