USDCAD: Can This Materialize Into a 1,300-Pip Opportunity?

by Justin Bennett  · 

January 8, 2024

by Justin Bennett  · 

January 8, 2024

by Justin Bennett  · 

January 8, 2024

Can USDCAD rally 1,300 pips in 2024?

Today’s video has the details, including both the short-term and long-term potential from USDCAD as the pair hovers between support and resistance.

Watch the video below and scroll down for the annotated charts and analysis.

Last week, I discussed the potential for a USDCAD long opportunity above 1.3380.

At the time, the pair was in the process of reclaiming its 2021 trend line at 1.3330 but had yet to close a day above the level.

With last week closing above that 2021 trend line and today surging above 1.3380, it’s time to discuss the potential for a much larger opportunity for USDCAD in 2024.

But before we do, separating short-term and long-term ideas is imperative.

I’ve discussed the more immediate potential for USDCAD in previous videos; those thoughts and key levels are just as significant today.

There is nothing I discuss in today’s video about the long-term potential that will change what I’ve mentioned previously.

I will still trade USDCAD level by level and share my thoughts with VIP members.

With that said, the weekly time frame shows higher lows since 2021 into the 1.4670 range highs.

That’s approximately 1,300 pips higher than today’s rate.

What’s notable is the potential for this to become an ascending triangle if USDCAD bulls reclaim 1.3380 this week.

If so, the objective of the chart pattern is exactly 1.4670, also the macro range highs since 2016.

That could be a mere coincidence, but I do find it incredibly interesting as a potential macro theme to trade in 2024.

But in the end, any potential for USDCAD boils down to the week-to-week and day-to-day price action.

A 1,300-pip opportunity can only materialize with a 1.3380 reclaim this week.

The same goes for key levels like 1.3480 and 1.3600, with a particular emphasis on the 1.3870 range highs.

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  1. My opinion is that last week was not a reclaim. The weekly trend line you drew could also fit with last week’s bar ramming into it as resistance from below. Added that there is horizontal support already at 1.338 and loads of wick action above, as well as an inside bar which just broke to the downside. Short looks attractive to the recent low.

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