USDCAD: Keep an Eye on These Two Channels

Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

While markets are slow, it seems a good time to discuss the broader technical landscape for USDCAD.

It’s a pair that hasn’t done much lately.

The price action on the daily time frame is less than favorable.

And even if you do identify an opportunity, the back an forth movement will make it incredibly difficult to stay in a trade.

However, the weekly time frame shows something much more interesting.

We have two multi-year channels in play.

The first is a descending channel that has played a role since 2016.

The second is a smaller ascending channel that commenced at the end of 2017 and developed further throughout 2018.

Now, because the price action in the chart below spans several years, there won’t be an opportunity here any time soon.

It will likely take weeks or even months for something to materialize.

That said, the two structures below are certainly ones to watch moving forward.

They offer a broader view of USDCAD, which can help you determine the longer-term trend depending on how things play out.

For instance, if USDCAD breaks ascending channel support, we could see the pair trend lower toward the 1.2000 area next year.

On the other hand, a break above descending channel resistance would expose 1.3660 and perhaps 1.4500.

I won’t try to guess the market’s future direction.

I will, however, have a plan for both scenarios once USDCAD gets closer to breaking out from this terminal pattern.

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