USD/CAD: The Direction of Highest Probability is now bullish

Tian Kriek

Analyst


May 21, 2019 03:47 AM

BULLISH

Daily Trading Range:
USD/CAD: The Direction of Highest Probability is now bullish and I am looking for price to breach the pivotal resistance at 1.3400 in order to look for a buy trade. The Daily Stochastic is aligned for a buy I just need to time my entry on the 2 hour time frame. Be mindful of pivotal resistance at 1.3600 and potential volatility in OIL which is correlated to the CAD basketIMPORTANT: OPEC remains on target to cut production. The most recent cancellation by the Trump Administration for 8 countries to purchase OIL from Iran will also send OIL higher. At the same time Trump is pressuring OPEC to lower OIL prices so clearly there is a conflict. Due to the various conflicting news events with respect to OIL I believe that the OIL market will be volatile this coming week. It's therefore good idea to stand aside on the CAD Basket. Escalations between Iran and the USA will send OIL higher

Daily Chart

Daily Chart

Daily Support and Resistance

Resistance 3: 1.3270
Resistance 2: 1.3300
Resistance 1: 1.3450
Current Price 1.3425
Support 1: 1.3000
Support 2: 1.2800
Support 3: 1.2500

Two Hour Chart

Two Hour Chart
The market is moving can you keep up?