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Currency
by Seth Parker on December 19th, 2018

USDCAD Analysis – Buy signal ahead of the FOMC

Maybe trading dollar before the FOMC and the interest rate decision is not the brightest idea on the record but we need to mention this interesting setup on the USDCAD. The pair was previously mentioned on the 3rd of December after the chart was rocked by the large bearish gap. For some traders that was a strong sell signal but we warned our readers not to get too bearish:

„Gaps like to be closed so the leading short-term scenario now is an upswing. I would play this situation safe and in my opinion, the sell signal will be triggered, when the price will break the yellow horizontal support. As long as we are above, buyers can still think about some kind of a defense. „

usdcad chart

That was a great call. The price did not manage to break the support so the proper sell signal was not created. Instead of that, we came back inside the channel up formation, waking up back the buy signal. On Monday, the price made a decisive upswing and finally broke the resistance created by the highs from the end of June. Combination of those two factors is a significant signal to go long. FED rising rates today is no longer so certain as it was few weeks ago but traders seems quite optimistic, at least here, on this pair. As always, this view should be quickly verified.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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