We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • RT @FirstSquawk: Five rockets hit near US embassy in Iraq capital: security source
  • #DidYouKnow crude #oil is a natural resource that differs in composition depending on its location. Find out more crude oil facts from @WVenketas here: https://t.co/Ssp486xz2J #OOTT #CommoditieswithDailyFX https://t.co/NVBR5kbYgb
  • The $JPY may resume a five-year rise against the New Zealand Dollar if prices make good on a Head-and-Shoulders pattern, pushing NZD/JPY toward 70.00. Get your market update from @ddubrovskyFX here: https://t.co/DXPkAjLoLp https://t.co/nyi5fDamr8
  • RT @RaoulGMI: Thanks Fitwit! Lots of great, smart ideas of playing the downgrades of BBB. The collective hive mind is truly incredible and…
  • transmissibility is increasing — news flow hasn’t been kind over the weekend — should be an interesting globex open #CoronavirusOutbreak https://t.co/UZYoZOQZ7V
  • The #Euro may be preparing to turn lower against the Japanese Yen, resuming a two-year downtrend and setting the stage for a decent below the 111.00 figure. Get your market update from @IlyaSpivak here: https://t.co/jtjJ1H2eRi https://t.co/epncUWJTSo
  • The $JPY has faded into 2020 as market risk appetite has held up and hit demand for haven assets. USD/JPY now challenges a key medium-term downtrend, but hasn’t topped it yet. Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/bLWABxibOo
  • My pleasure! https://t.co/R7ArKNjCNO
  • The range in USD/CAD broke with aggression this week as CAD sellers pushed the currency after the Bank of Canada rate decision. Get your $USDCAD technical analysis from @JStanleyFX here: https://t.co/8oHoLLqvtR https://t.co/8ZXx6GbKAn
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here: https://t.co/CPmNJSgHXY https://t.co/RdM0cbyfSf
Range Traders Set USDCAD Entries at .9850

Range Traders Set USDCAD Entries at .9850

2012-03-26 17:53:00
Walker England , Trading Instructor,
Share:

The USDCAD currency pair remains in the range first discussed with the March 7th, Chart of the Day . Resistance can be seen holding at 1.0025 on the daily chart below, with a recently created wick on March 23rd. This level has been tested for the seventh time, with price refusing to break higher. Current support is still held by the March 3rd low at .9841. If price stays above this point and continues to range, traders may look to a variety of strategies to enter in fresh buy order.

Range_Traders_Set_USDCAD_Entries_at_.9850_body_Picture_2.png, Range Traders Set USDCAD Entries at .9850

Typically, range traders will look to buy support and sell resistance levels for as long as these levels hold. There are many ways to plan for entry, but the easiest is simply placing a price order to buy at support or sell resistance. Entry orders allow us to set an order away from present market that will execute when the price we select becomes actively traded in the market. This is extremely beneficial to traders because we don’t have to sit in front of a chart for these price levels to be hit!

Stop and limit orders are easy to identify in a range bound market. Stop losses when range trading should either be placed below support, or above resistance. This will allow us to exit a position in the event of a breakout. If price breaks out to lower lows or higher high, our range has been nullified and it is in our best interest to look for new positions. Limits can look for a full or partial extension of the range to either support or resistance levels depending on your buy/sell preference.

Range_Traders_Set_USDCAD_Entries_at_.9850_body_Picture_1.png, Range Traders Set USDCAD Entries at .9850

My preference is to set entries to buy the USD/CAD at .9850. Stops should be placed below support at .9800. Limits should first target .9950 for a clear 1:2 Risk/Reward ratio. Secondary targets can be placed above resistance at 1.0025 in the event of a breakout.

Alternative scenerios call for a breakout of support and resistance.

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.