FX Reversals: USDCAD Post News Update
USDCAD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Even with a worse than anticipated Non-Farm Payroll (NFP) figure this morning, the USDCAD currency pair remains unshaken. During the event the pair tested both values of support and resistance, but at present has failed to break out. Currently range resistance is found at the R3 pivot near 1.0897, and support at S3 near 1.0848. With both values still being respected, reversal traders can look to trade the current range.
A breakout above the R4 pivot or below the S4 pivot, would signal an end to ranging conditions. A price move above R4 at 1.0921 would indicate further USD strength, as the pair moves to a higher high. Conversely, a price break below last support at 1.0824, would indicate momentum shifting towards lower lows for the USDCAD. In either of the above breakout scenarios, the range should be considered concluded with traders then positioning themselves with the markets new direction.
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---Written by Walker England, Trading Instructor
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