BREAKOUT ALERT!
USD/CAD is trading below a major support level!
Does this mean more losses for USD/CAD?
USD/CAD per day Planned by TV
As you can see, USD/CAD is already trading below the psychological level of 1.3300 that has been supporting the pair since November 2022.
Keep in mind that the pair has already broken below the main trend line support 2 months ago.
What makes the daily chart more interesting today is that the 100 SMA is showing a bearish cross of the SMA against the longer term 200 SMA.
Are we looking at a reflection in Genesis?
Before you sell USD/CAD like there is no tomorrow, you should notice that Stochastic is already showing an “oversold” signal.
Not only that, but the breakout candle is still not too far from the broken range support area, which means that we could still see USD/CAD back into its longer-term range.
Selling at current levels or on confirmation of the next candles would make a good play if you are convinced that the US dollar is about to take a further beating against the Canadian dollar.
Previous high of 1.3060 is a good initial target, but you can also keep an eye on 1.2900 levels if there is enough momentum.
Don’t you think that the dollar might lose more pips against the Canadian dollar?
You can also wait for USD/CAD to return to its range before targeting prior inflection points like 1.3450 or 1.3640.