Forex Trading: USD/ CAD Prices We will analyse the price fluctuations in the USD/CAD currency pair. Today, there was no positive news for the US dollar. All crucial data, including April's US unemployment figures, was disappointing, placing the dollar in the red zone. As a result, it weakened significantly against the euro and pound. However, its reaction to the Canadian dollar remained relatively subdued. Despite reaching the 2/8 Murray reversal level and testing 1.3618, the market response in this currency pair appears mild, suggesting potential for further decline. Interestingly, despite adverse data, the US dollar is recovering from its decline, nearing the bottom of the 3/8 regression channel at 1.3348, indicating a possible rise to the 4/8 Murray resistance level at 1.3676 before resuming its fall.
Regarding the USD/CAD pair, I plan to initiate short positions today due to favorable conditions. The current price of 1.3629 is within the area of interest for sellers, prompting consideration for selling now or at a slightly higher price. With bearish momentum prevailing and minimal bullish resistance, short positions are opportune. My target today is to reach one of the lower support levels at 1.36076, with a stop-loss set just above 1.3661. I'll consider maintaining short positions longer if the decline continues and surpasses 1.3607 with increased market activity. Selling remains the priority for today, contingent upon the price returning to the top and triggering a pending limit sell order at 1.3738 to reach the 1.3582 support level. A stop-loss will be at 1.3747 to facilitate trading comfort, possibly adjusted to breakeven, allowing for additional selling as the movement progresses. Ultimately, I will await the outcome and halt trading for the day once a stop order is triggered.
