USDCAD price action – tactical buy
Canadian dollar trades on a slight bounce around 1.3100 during early asian session on Monday. After a spectacular fall down from 1.3680 highs within roughly more than month period, the price looks heavily oversold now. On a daily chart the pair has approached to the lowest end of price lines which usually represent a very strong support are. Hence the 1.3050 is likely to contain further fall down.
On a daily chart we would expect temporary bounce to 1.3160 resistance.
A close look at 4 hour chart would provide more detailed picture of supports and resistance lines and possible price action during this week.
Price lines are stretched too and this gives extra strength to our assumption of expected bullish bounce. Resistance area 1.3160 -1.3190 is the first barrier for any bullish action. If broken – apparently after few tests – the next resistance is 1.3250 and this is where the price can turn down again.
So the trade idea now is the tactical buy at current price levels and add up to position if price goes further below to 1.3050.
Have a nice week !