Daily Price Action
Shares

USDCAD: Keep an Eye on These Two Channels

Shares

Important: I use New York close charts. Click Here to Use My Preferred Broker

The USDCAD reached a critical resistance area on Friday. However, even from the daily time frame, the 1.3100 area is rather unsuspecting. It isn’t until we draw a certain channel that we realize why the pair might struggle at current levels.

USDCAD ascending channel on the daily chart

Note how the USDCAD is testing ascending channel resistance that extends from the October 2017 high. To be clear, a mere retest such as this does not justify a short position, at least not for me.

Instead, I’ll need to see bearish price action at 1.3100 to get short. Until that time, I’m just a bystander.

However, there is a second ascending channel I’m keeping an eye on. This one is best viewed from the 4-hour time frame.

Notice how the two lows from the 1st and 16th of February and the highs from February 9 and March 5 have carved an ascending channel. Since that March 5 retest, however, the pair has been erratic and hasn’t really conformed to this pattern.

We also have a key horizontal support not far from today’s price at 1.30. This will be another battleground for buyers and sellers. In fact, I’m hesitant to sell the pair at all as long as prices remain above 1.30 on a daily closing basis.

As you can see, there are multiple ways to play the USDCAD. Bearish price action on the daily chart near 1.3100 could offer a short opportunity, as could a close below 1.30 or this 4-hour channel.

Alternatively, a daily close above the 1.3100 region would take us to 1.3210.

This post isn’t intended to point out a particular setup, but rather give you a few key levels and patterns to keep an eye on as things progress.

Free Webinar: Learn how I trade pin bars, draw key levels, and much more! 

Click Here to Register

USDCAD 4-hour ascending channel

Leave a Comment:

13 comments
Nguyen Dinh says

thank you. Sir

Reply
Milad Lj says

Justin you are the best thank you for all ❤

Reply
Emuobo says

Thanks

Reply
Clive says

Thank you for the update.

Reply
Zahid Nawaz says

Sir the GBPJPY why up up and up u r said 1.45 support 1.48 why this going 1.50

Reply
    Justin Bennett says

    The only thing that matters to me is where the day closes at 5 pm EST. Everything else is just noise.

    That said, today’s selloff from 149.60 on the GBPJPY was triggered by the 2016 trend line that I mentioned last week; so the technicals are still very much a factor. See here:

    https://dailypriceaction.com/daily-setup/gbpjpy-could-overshoot-new-resistance-at-149-40

    Reply
      Chucks says

      I expect you to give update on this week forecast because some pairs make appreciable moves; GBP/USD that broke key level of 1.40

      Reply
Rad says

How do I join the whatsapp group from uk?

Reply
    Justin Bennett says

    Text “join” to +1 (240) 778-3679. Be sure to save that number to your contacts. Otherwise, you won’t receive messages from me.

    Reply
Alphonsus Chukwu says

Thanks for the update
How can I join the whatsapp group

Reply
    Justin Bennett says

    See my response above. Just so you know, it is not a group. It’s a broadcast list.

    Reply
amr says

I want to know why Eur/Gbp go up and I lost all my gained pips

Reply
mxolisi says

Thank you very much

Reply
Add Your Reply