Bullish signal on the USD/CAD daily chart

usd vs cad on the daily chart
USD/CAD – Daily Chart

The USD/CAD closed the week in bullish mood, with the pair testing parity once again, a level not seen since late August, and closing the week just marginally below this key area at 0.9970 on the daily chart. This bullish momentum for the pair was first signaled in early October with our trading indicator once again leading the way.  The price action on the 19th October, finally delivered some much needed momentum, as the pair surged higher on the day to break above this deep area of price congestion in the 0.9700 to 0.9850 region.

Last week’s price action was relatively muted, but with the pair bouncing off support in the 0.9891 region, this has now created a strong platform for a further move higher in due course. Indeed, on Friday, our trading indicator delivered our first conservative entry signal based on trend, and with consistent buying volumes on both the 3 day and daily charts, coupled with a change in trend on the three day chart, the short term forecast remains firmly bullish.

From a technical perspective the next level of price resistance is now in the 1.0150 area and this level should be tested in due course. If this is breached then we can expect to see the USD/CAD push higher and back to test the 1.0350 level in the medium term.

By Anna Coulling

 

About Anna 1007 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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