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USDCAD Trying to Form Higher Jan Low VS Nov Low

USDCAD Trying to Form Higher Jan Low VS Nov Low

Posted January 26, 2023
Darren Chu
Tradable Patterns

USDCAD Trying to Form Higher Jan Low VS Nov Low

The USDCAD continues trying to firm with a higher January low so far versus the November low.  The question is whether the small bodied weekly green candle trying to form after a weekly Doji and Hammer are merely consolidation ahead of another slide towards the November low, or a hint of another bounce to triangle resistance (on the weekly chart).  Although the USDCAD no longer appears to be in the late stages of a Bull Flag consolidation (since the October high), any deeper slide to the psychologically key 1.30 whole figure level will likely find strong support, but would have to wait until at least February.  Watch for volatility today following the 830am EST US GDP data and Friday after the release of the US core PCE price index.  The escalation in the Ukraine-Russia conflict deserves close monitoring.  Except for the downsloping weekly MACD, the weekly, daily and 4hr RSI, Stochastics and MACD are bottomish or rallying.  I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Wednesday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on GBPAUD, SILVER

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Source: Interactive Brokers TWS

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