Trade Recommendation: USDCAD

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This trade recommendation is setting up quickly and requires prompt attention.

The Canadian Dollar (USDCAD) has a good setup to go long on a breakout above the swing high from last week’s closing move. The 3 Day Rolling Pivot Range (RPR) and the Weekly Pivot Range high level are providing near term support at the time of writing.

There are 2 indicators that I also use that are coinciding with the swing high level from last week. These are the Opening Range high/low (white dots) and the ‘A’ up line. Each of these levels closely associated, represent a key price area and where we will want to go long the market.

What confirms the long bias is the Daily Pivot Moving Averages turning up and crossing over.

The longer term Pivot support levels are the 6 Day Rolling Pivot Range and the Monthly Pivot Range.

We must wait for confirmation however, and this will increase our chances of success if we buy on strength. Using the 60 minute chart we will want to buy on a breakout above the swing high level at 1.29110. This will confirm the market wants to move higher. Place the stop loss just below the 3 Day RPR and the profit targets stated below.

Entry Price: 1.29110
Stop Loss: 1.28620
Profit Targets: First profit target 1.29650. Second profit target is 1.2988. As the market moves higher on the breakout, trail a stop loss 30 pips until second profit target is hit.

Disclaimer: Disclaimer: The writer has no positions in the forex markets but does engage in short-term trading of forex and futures.

Featured image courtesy of Shutterstock.

I am the founder of VirtuesTrading.com, where traders can learn to use my Virtues Trading System. Formerly a Commodity Trading Advisor, I got my start in the Energy and Precious Metals Options & Futures pits of the New York Mercantile Exchange. I operate on the premise of efficient markets, the management of risk through the analyzation of price action and technical indicators. I have a BA in International Relations from the University of Southern California.