Daily Price Action

USDCAD Rally Resumes Above 1.40


On April 2nd, I discussed a pattern that would likely send the USDCAD higher.

I also mentioned two options for USDCAD bulls on March 30th.

The key takeaway from those posts was that buyers needed to secure a close above the descending channel resistance.

Buyers achieved that with Wednesday’s close.

We discussed the pair throughout Wednesday’s session in the member forums.

One thing I said was that as long as USDCAD stays above 1.4000, the targets are 1.5000 and 1.5500.

Of course, the USDCAD would need to take out the year-to-date high first before it can realize either of those targets.

If you view the monthly time frame between 1998 and 2002, you’ll quickly notice how influential 1.5000 was.

Furthermore, if I use the March 9th gap up to measure the objective, I get a value of 1.5000 or thereabouts.

And if I use the year-to-date low of 1.2960 to determine the objective, I get a value of 1.5550.

USDCAD could move higher than that, but those levels will play a role.

Just remember that there are no guarantees.

As nice as things look for USDCAD bulls today, that can change in a heartbeat, especially in these incredibly volatile markets.

That said, the technicals are just as relevant as ever.

I would even argue that technical analysis is more important now given the unprecedented nature of things.

With that in mind, I’ll remain bullish USDCAD while above 1.4000 with targets of 1.4660, 1.5000, and 1.5500.

Want to watch the USDCAD video I just released in the member’s area?

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USDCAD 4-hour channel
USDCAD 4-hour time frame

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Justin Bennett says

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Clopas says

Hello sir, please can you briefly explain to me how you used gap up to determine the objective and he year to date low?
I await your response. Thank you

Adenani says

I like the predictions about usdcad. Supports Head & Shoulder patterns (daily) on audcad, nzdcad & gbpcad.

Godwin says

I love your analysis,can you give a signal on daily current trading, like what will trend on a trade today.

jabbar abbasi says

great analysis sir now its moving to its target bcz of bullish setup in D1 candle

Timothy says

Firstly, I commend you for all the weekly forex analysis. Usdcad has breakout in 4 hours timeframe and I noticed a daily closed above 1.4000 that confirm bullish move. But is necessary to wait for restest of 1.4000 or 1.4050 before open any order?

Keith Plumbe says

Thanks again for the good advice, Justin. I personally don’t like the USD/CAD pair, but I’m still finding your advice on JPY linked pairs very reassuring in my day-trades on USD/JPY, EUR/JPY and GBP/JPY. I check my set-up’s and entry options every morning (European time) and then, before I place a trade, I check that my “read” fits with your assessments – amazingly, we’re almost always “on the same page’, which I find very valuable. Very many thanks, Keith

Kelechi says

Thanks Justin. Your analysis has been a breakthrough for my trading career. I think going by daily range, usdcad might reach as far 1.4318 today

ali says

thanks for the up date sir justin.

andrea carminati says

If usdcad goes up, it means that oil goes down, but how much oil can go down again?

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