USD-CAD STRUCTURE LONG|KEY LEVELS

14. Aug. 2020

The pair is trading in a downtrend, that is about to face a number of support lines, within the logic of its long term uptrend within the channel, which is visible form the bigger chart above.

The key levels are presented on the chart by the letters S for support and the letter R for resistance.

The yellow triangle is the current movement corridor, and the support forces are likely to push the price to the upper and diagonal boundaries of the yellow triangle to then see if the downtrend is truly over.

Anyhow, even though the local trend hasn't yet changed, the general sentiment is clearly upwards looking already, thus, our target trades are longs.

And even though, given the number of levels to consider the road up might be bumpy, it is here, that we can pick the pair at a good price for a swing long.

Also, one has to remember, that the last word is always with the dollar index, but remember, that the pairs might have exhausted their strengthening potential against the dollar, and for this pair to go up the dollar index just has to be stable or, indeed, be going up.

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Have a nice day!