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USDCAD: Shorts Favored Below 1.3380

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A few days ago on January 3rd, I wrote about a USDCAD short opportunity.

At the time, the pair was trading at 1.3513. It was also hours away from closing back inside an ascending channel that began in early October.

Although USDCAD didn’t retest the 1.3565 area as new resistance, it is down more than 200 pips since my last commentary.

It also closed below another key area yesterday.

The price action between November 20th and December 10th of last year indicates that 1.3315 is a price of some significance.

Yesterday’s 1.3299 close means that 1.3315 should begin to serve as new resistance.

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The 1.3315 area isn’t that far below former channel support. That area is closer to 1.3360.

All in all, I see further losses for USDCAD.

As for key support, the 1.3060 region has a lot going for it. It served as a pivot between mid-September and early November of last year.

We also have channel support just below 1.3060 near 1.3000. Either area could trigger an influx in buying pressure.

However, keep in mind we have a Bank of Canada rate decision and statement on Wednesday at 10 am EST.

An increase in volatility at this time is all but guaranteed.

As such, it may be best to wait until after tomorrow’s BoC decision to avoid the volatility that is likely to ensue.

But as long as USDCAD remains below former channel support near 1.3360/80, I will remain bearish with a target of 1.3060.

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USDCAD ascending channel on the daily time frame

Leave a Comment:

39 comments
Liam says

When you say your going to remain bearish, are you actually in a trade? Because I dont see any price action signals.
Any help would be appreciated
Thankyou

Reply
    Justin Bennett says

    A bearish bias. But I also don’t always wait for a price action signal.

    Reply
      Albert Enstein says

      Just bells and whistles empty talk…Canada is in deep shit… I live here and see USD/CAD over 1.50 soon.

      Reply
        Justin Bennett says

        And I live in the U.S. That doesn’t mean I “know” where the USD is going (although I have a pretty good idea).

        Long-term bullish trends have pullbacks too, and they’re often considerable.

        Reply
        Batsaikhan Radnaabazar says

        I live here in Asia and USD/JPY will down soon

        Reply
      thymesh says

      Great Analysis with your price forecasts. Am glad to be learning from you. Many thanks.

      Reply
        Justin Bennett says

        You’re welcome. Glad to hear it.

        Reply
      Liam says

      If you dont wait for price action what else are you waiting for?

      Reply
        Justin Bennett says

        A breakout or indication of a forthcoming breakout.

        Reply
Sam says

Happy New Year Mr Spot On!

Hopefully that rate decision will take, the price action back to the Mean, which in turn will present an opportunity to go short.

Thank you Mr Spot On all the best for 2019.

Reply
    Justin Bennett says

    Happy New Year.

    Reply
Itumeleng says

Truly speaking sir u are really great please help me to be successful sir I really need your help

Reply
ayodele says

I have watch your video on making consistent profit SEVERAL times and have try it even till NOW,but,the result is not positive though I use 4hr,please what is wrong,why is it not working on 4hr as daily timeframe you used.

Reply
    Justin Bennett says

    That’s impossible for me to answer without knowing more about how you’re trading.

    Reply
Keoagile says

Justin Bennett thank you very much more blessings to you this year and beyond

Reply
    Justin Bennett says

    You’re welcome.

    Reply
simon says

Justin, NZU/USD went low today…are you still bullish bias?

Reply
    Justin Bennett says

    Yes. I have no reason not to be.

    Reply
Ibukunoluwa says

Your signals are always on point.

Reply
    Omotayo Dosunmu says

    Brother, Holla at your boy nah.

    Reply
    Justin Bennett says

    We’ve had a good run since December.

    Reply
Jenerali says

thank you justin

Reply
paschal jacob malongo says

Bro u too good am glad to be part of you

Reply
Vettis K1 says

I’m going to navigate that resistance area in coming day, but I’ll wait for the dust to settle. Thank you J for everything.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Sam Suresh says

Hi Justin. I have been following your posts and benefited a lot through your analysis. My trades on demo account CADJPY and USDCAD exactly worked as analysed. I am so relaxed after converting to Daily Chart and no more gluing to screen for long hours. I am looking into EURAUD and would like to hear your comments on the same.

Reply
    Justin Bennett says

    The daily time frame is the way to go. Glad you’re finding the content helpful.

    Reply
PHAM BINH LUU says

So after all BoC decision will decide which way the pair will go, right. Thank you!

Reply
    Justin Bennett says

    Only the market knows the answer to that.

    Reply
Rowelto says

I prefer to hear what caused the movement technically to just explain plainly as stated.

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POLA P says

“As such, it may be best to wait until after tomorrow’s BoC decision to avoid the volatility that is likely to ensue.”

THANKS MR
streets are not for every body that’s why the have got side lines…..

Reply
    POLA P says

    …they have..

    Reply
    Justin Bennett says

    You’re welcome.

    Reply
Prasanna says

Thanks sir ;
Your alost all trades r perfectrl except recent one of EURJPY SHORT.What r your views on EURJPY?

Reply
francis says

thank you Justin, your analysis has been quite helpful.

Reply
    Justin Bennett says

    You’re welcome, Francis.

    Reply
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