Ticker tape by TradingView

Want Trade Alerts?

See all of our entries, exits, and analysis. 
Use code READER for 25% OFF!
Join VIP

USD Vs. CAD, Which Is The Better Play?

9/10/2021

The summer was a constant back-and-forth struggle in sentiment between the two currencies. Now that we are nearing the tail end of Q3, things have changed from a monetary standpoint. The Fed keeps flashing signals of potential tapering this year and making investors consider a sooner-than-expected rate hike.

Our outlook

Both countries have great GDP q/q's meaning that they are rebounding at a very fast rate compared to other countries. The thing to consider between these two powerhouses is whether investors expect a raise in rates. Canada's overnight stayed the same at 0.25% although this week's beat in jobs numbers could suggest that the Bank of Canada might be looking to hike sooner. Right now, it's tough to say, but the USD looks like the best contender for higher rates to come quicker now that analysts believe the first hike to come in 2022. Looking short term, CAD seems to have the upper hand, but in the next 6-12 months time, USD might have an advantage as the economy is handling the pandemic better than Canada with a 5.2% unemployment rate vs Canada's 7.1%.

Trade Setups

USDCAD

USDCAD looks like it formed a head and shoulders pattern on the 1D chart which could be the start of a downtrend from a technical standpoint. The 50 and 200 DMAs lie below as well as a support level around 1.24841. However, if price can break out of its consolidation zone (above 1.26697ish range) we could get a higher move to the first shoulder around 1.28029.

Get Alerts every time we take a trade!

Join The VIP Community!

Our entries, exits, & analysis
Live webinar coaching calls
Trading chatrooms
Strategy library
Use Code "READER" for $5 OFF!
Join Now

Need a Better Broker?

Bitcoin, Ethereum On Sale Again

9/24/2021 The People's Bank of China banned all crypto transactions on overseas Chinese services along with its domestic ban. Bitcoin is down over 8% today and Ethereum is down 11.48%. Our outlook I think we're seeing a lot of noise around China and their condemning of cryptocurrencies before they digitize their own. In the short […]

Read More
What's To Know After The BoE's Monetary Policy Summary

Let's look into the Bank of England's Monetary Policy Summary which took place on Thursday the 23rd of September, 2021. Quick Summary: BoE keeps interest rates unchanged at 0.10% BoE will maintain its asset purchasing target at £875B The vote to keep policy unchanged passed with a 7-2 vote The minutes of the MPC meeting […]

Read More
Is Gold A Buy Here?

9/23/2021 The precious metal snapped three days of gains and tumbled back down to the support range from $1740s-1760s approximately. Gold is down -.56% on the day going into the opening of the NY session. Our outlook Gold will likely rise on the US indices falling, and is usually due to slowing economic growth. Because […]

Read More
Bitcoin Goes On Sale- Golden Cross Opportunity

9/21/2021 Bitcoin Update For the past month, Bitcoin went on a tear rising over 20% from the beginning of August. Recently, however, China and other risk-off factors have contributed to a 23% decline from the recent highs around $52,760. Now the most prominent crypto has touched these monthly lows which could be a potentially good […]

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

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram