USDCAD LONG

11 авг. 2023 г.

Take Profit 1 - 1.3486
Take Profit 2 - 1.3536
Take Profit 3 - 1.3586
Stop loss - 1.3306

The USDCAD pair has been in a bullish trend for the past few weeks, and it is currently trading near the top of its range. The current spot rate is 1.3406, and a buy entry point of 1.3406 is just below the recent high of 1.3426.

There are a few reasons why USDCAD could continue to rise in the near term. First, the US dollar is generally seen as a safe haven currency, and it has been strengthening against the Canadian dollar as concerns about the global economy have grown. Second, the US economy is expected to grow more quickly than the Canadian economy in the near term. This is due to a number of factors, including the strength of the US manufacturing sector and the country's exports of cars and other manufactured goods. Finally, the Bank of Canada is expected to raise interest rates more slowly than the Federal Reserve, which could put downward pressure on the CAD against the USD.

Technical analysis:

From a technical perspective, the USDCAD pair is trading above its 200-day moving average, which is a bullish signal. The pair is also forming a bullish ascending triangle pattern, which is a continuation pattern that typically leads to a breakout to the upside.

Fundamental analysis:

The US economy is expected to grow more quickly than the Canadian economy in the near term. This is due to a number of factors, including the strength of the US manufacturing sector and the country's exports of cars and other manufactured goods. However, the Bank of Canada is expected to raise interest rates more slowly than the Federal Reserve, which could put downward pressure on the CAD against the USD.

Risks:

There are a few risks to consider before entering a trade on USDCAD. First, the global economy is facing some headwinds, such as the war in Ukraine. These headwinds could weigh on risk appetite and lead to a decline in the USDCAD pair. Second, the Federal Reserve is expected to raise interest rates more quickly than the Bank of Canada, which could put downward pressure on the CAD against the USD. Finally, the Canadian economy is facing some headwinds, such as the war in Ukraine and the ongoing trade tensions with the US. These headwinds could weigh on the CAD and lead to a decline in the USDCAD pair.

Overall:

I think USDCAD is a good pair to trade for those who are looking for a long-term bullish trend. However, it is important to remember that the forex market is volatile, and there is always the risk of a reversal. You should always do your own research before entering any trades.

Here are some additional factors that you may want to consider before entering a trade on USDCAD:

The economic outlook for the US and Canada.
The level of volatility in the forex market.
The price of commodities, such as oil and other manufactured goods.