USDCAD: Shorts Favored Below 1.3380

by Justin Bennett  · 

January 8, 2019

by Justin Bennett  · 

January 8, 2019

by Justin Bennett  · 

January 8, 2019

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

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  1. 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

        1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

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

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

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