FX Reversals: USDCAD Tests Support
- USDCAD Tests S3 Support
- Range Resistance Found at 1.0992
- Prices above R4 Signal a Breakout
USDCAD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Going into Fridays close, we evaluated the USDCAD as breaking up through previously mentioned levels of resistance. However, as we begin a new trading week, the USDCAD is now retracing back down from its previous highs. As seen in the chart above, the pair has retraced to its daily range support found at the S3 camarilla pivot near 1.0951. If support holds, traders may look for price to bounce back towards resistance. Range resistance is currently found at 1.0992, which can also be used as a primary target for range reversal traders.
Next, traders should pay attention to today’s two breakout values. A break of price above R4 at 1.1012 would show a strong bullish continuation with the creation of new higher highs. This directly contrasts with a break below S4 at 1.0931. A move below last support would potentially expose the market to a broader market reversal. In the event of a breakout, it should be noted that market conditions are changing and signal an end of range bound markets. Traders can then consider positioning themselves with new market momentum.
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---Written by Walker England, Trading Instructor
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