USDCAD has been my favorite pair to trade for the past few weeks and there’s a reason for it. The swinging nature of this pair makes it a very attractive opportunity to enter and exist multiple times on its legs.
The Non-Farm Payrolls on April 1st was no April Fool’s joke. With unemployment rate rising from 4.9% to 5.0% and Canada’s GDP posts a 0.6% growth, this surely isn’t positive news for the USDCAD pair.
In my earlier post, I established that the 1.28~ zone was one to watch out for and I encouraged setting any profit targets just shy above this zone. From last week’s move, this was a smart play as price indeed did bounce off this zone and made a 50% or so retracement.
We can better see this over on the daily time frame. On the Friday of last week, the session closed off in a doji with massive upper and lower wicks. This would be the first indication that we should expect at least a short period of low volatility as neither long or short traders were able to direct the price in their favor.
USDCAD has been a good run and I plan on holding off on making any position plays until we have more information on how the 1.28~ price level is treated.
Stayed tuned for next week’s forecasts!