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USD/CAD Interesting Situation For A Long Trade

Published 02/04/2019, 04:23 AM
Updated 07/09/2023, 06:32 AM

There is an interesting chart situation on USD/CAD at the moment. Multiple confluences add to the probabilities that we could see at least a temporary upward move.

On the daily time frame we can see that the USD/CAD is approaching a rising trend line:

Daily USD/CAD

At the same time the price is in an extreme oversold situation.

On the time frame H1 we can see that there is a smaller divergence within a bigger divergence:

USD/CAD Nested Divergences

Because at this price level 3 edges are coming together, the price could make at least a temporary upward move. A long entry can make very much sense.

A possible target could be the first resistance zone:
USD/CAD Possible Target

This is a short term trading opportunity which will last only one day or at maximum a few days. I don't expect that the rising trend line will hold. So in my opinion this trade is merely a pullback trade within a bigger downward trend.

As always in trading: No trade is 100% sure. We can only play the odds.

Good luck with your trading.

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