Ticker tape by TradingView

June 30, 2020

Trade Ideas for CAD Pairs This Week

Frank Cabibi

Earlier this morning, CAD pairs moved hard on GDP news; CAD/JPY is up over 60 pips already today while USD/CAD tumbled when actual GDP growth/decline beat expectations by 1%. Here are our thoughts on these trending pairs this week:

Short Idea

Here is CJ on the 1D chart. The pair respected resistance back in early June and formed a new resistance after the four-day sell off. Notice how on the 14-Day RSI, prices were above 70 before it plummeted from 81 to 79 in a matter of days. Now RSI is getting higher as the pair pushes up today. If we see heavy movements like this continue, it is likely that RSI will get close to overbought levels again and can signal short interest for traders. One key level we're looking at is at 79.867. That level has been used as support back in October 2019 and even March of 2020. As prices near that newly formed resistance level, we think it's a good level to watch for short sentiment.

Long Idea

Cad Yen on the 4H chart broke out of a falling trend line which could be a good sign for bulls in the short term if prices close above the trend line. Upside looks like CJ has about 70 pips until it hits that key resistance mentioned on the 1D analysis. Similar to the 1D, the 4H chart holds resistance around the same level (79.800s).

Long Idea

Now looking at USD/CAD on the hourly. The better-than-expected news hurt this pair today as it pinned itself on support. The long wick from last hour makes it look like buyers entered to market as we start this new hour at 12:00 pm EST. It looks like this level of mild support could actually be a good long position. 14-Day RSI is around 47, so in between overbought and oversold. The pair could move in either direction, but our sentiment is more bullish than bearish as of now.

Conclusion

As you can tell, we're a little bearish on the Canadian dollar as the economy continues to suffer from negative economic growth for the past few months. Although actual was better than expected, GDP growth is significantly worse than last month. It went from -7.5% GDP growth to -11.6% decline in GDP. In my opinion, that's not good news, and I'm thinking that this move is not going to last.

https://www.forexfactory.com/calendar#detail=116262

Featured Photo: https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.poundsterlinglive.com%2Fcad%2F13110-canadian-dollar-feels-the-pull-of-sliding-oil-prices&psig=AOvVaw2QxIxUP0ZDxAUb6mMLaVkn&ust=1593619048458000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCMiXgOjzqeoCFQAAAAAdAAAAABAJ


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

A1 Edgefinder

FLASH SALE
Take 40% off the Edge finder using code "READER"
GET ACCESS NOW

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
A1 Trading Podcast
We Like These Pairs For Next Week

As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]

Read More
More Downside On The SPX500 After This?

When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]

Read More
More Upside For Yen After This

The historically 'safe' currency to hold in times of recessions is in a unique situation now with a couple factors in place. Here is why the yen is stronger today as well as some trade setups that could push its value either up or down. Weaker Yen Now, Stronger Yen Later The Bank of Japan […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
homescreensmartphone linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram