The USDCAD has been on the decline since it hit its most recent high as visible in this H4chart. The pair has briefly breached its 200 DMA to the downside and the last few sessions have attempted to form a temporary bottom just below that which formed an ascending support line. This pair should rally into its descending resistance line.
MACD has been extremely weak and formed a negative divergence which suggests potential future losses after a brief rally. RSI has reached oversold territory and has improved from extreme conditions which support the ascending support line.
We recommend a long position at 0.9920 with a potential second entry level at 0.9800. Should this pair breach 0.9850 to the downside we advise traders to open a short position in order to hedge the initial long before committing new long positions to this trade.
Traders who wish to exit this trade at a loss are advised to place their stop loss level at 0.9850. We do not utilize stop loss levels and will execute this trade as recommended. Place your take profit level at 0.9990.
