Trading The Canadian Dollar’s Next Big Move

The Canadian Dollar Mega Move is on the way

Good Morning,

Platinum Subscribers,

We had a wonderful trade on our last technical blog where traders were sitting pretty and have taken good profits.

Last weeks sentiment on USD/CAD was fairly even with the Canadian dollar taking a bullish move followed by a correction later in the week.

This week we are looking for a fresh opportunity on USD/CAD, a fantastic breakout opportunity has presented itself to us and we would like to share this with you. The Loonie is on the verge of a big move and we are looking to fill you in on how Platinum approaches this type of opportunity.

THE CANADIAN DOLLAR: WHAT EVERY FOREX TRADER NEEDS TO KNOW

FUNDAMENTAL POINT OF VIEW ON CAD:

Inflation report: Friday, 13:30.

This is a key event for the CAD each month as inflation figures are critical for indicating an economy’s health. Therefore, it is important to look at each month:  This is the most important inflation-related release due to its earliness and broad scope. This is among the few non-seasonally adjusted numbers reported on the calendar, as it’s the calculation most commonly reported.

Let’s take a look at what happened previously in this event:

Inflation surprised to the downside in March, with headline CPI advancing by 0.3% and Core CPI by 0.2%. The other measures of price development were OK with Common CPI up by 1.9% y/y, the Median CPI at 2.1%, and Trimmed CPI at 2%. Similar figures are likely for April.

Retail Sales: Friday, 13:30.

The Retail sales measures the change in the total value of sales at the retail level, excluding automobiles. Automobiles actually account for around 20% of retail sales but these figures tend to be more volatile therefore are excluded in the overall figure of retail sales.

Competing with the inflation report, retail sales lag and are for the month of March this time. Back in February, Retail Sales rose by 0.4% m/m while core sales remained flat. Better data is on the cards now.

With no Major fundamentals such as FOMC or NFP Market, we are safe to rely on technical this week and have a strong bias towards the technical charting.

TECHNICAL POINT OF VIEW ON THE USD/CAD

From the daily chart, we can see the recent result of the inverse head and shoulders pattern. We are now also in an ascending triangle pattern. Bias now is for Bulls and a breakout of the recent supply level is the trade to take. We have an opportunity to join the flow of the trade and enter on the pullback @ 1.2845. the long-term momentum is still Bullish and that’s where Platinum traders will be trading.

USDCAD 15th of May 2018

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USD/CAD FOREX TRADING STRATEGY

Trade Entry: Long USD/CAD @ 1.2845 with a 40 pip stop loss with an initial target of 1.3075 and a secondary target of 1.3300

KEY TECHNICAL LEVELS ON THE USD/CAD

  • 2700 – Long-term Buying Level
  • 2600 – Long-term Buying level
  • 2500 – Long-Term Buying Level
  • 2055 – Long-term Buying Level

How to become a profitable Trader.

If you are a new trader and would like to learn how to trade, then sign up today to our 2-day free Foundation to Forex Trading Course. We have just introduced this as in the last month we have had a lot of inquiries on learning how to trade the financial markets. We can get you on the successful path of becoming a Financial Trader.

Hopefully, you have enjoyed today’s article and have gained great knowledge about trading opportunities and how to trade.

See you soon!

The Platinum Formula:

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade

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Hopefully, you have enjoyed today’s article. Thanks for reading!

Have a fantastic day!

Nisha Patel

Live from the Platinum Trading Floor.

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The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.