USD to CAD Trading Technical Analysis

USD to CAD Trading Technical Analysis. The USD/CAD pair has been following a significant uptrend line for some time, and is sitting at the 1.30 level, an area that has been important on the longer-term charts. Because of this, I’m going to go ahead and enter the market, with a relatively tight stop. I am playing on a bit of a momentum bounce, but I recognize that tomorrow is Nonfarm Payroll Friday. On top of everything else, we also get Canadian employment numbers coming out during the day on Friday. So with this, I’m going to go ahead and start to trade, buying at 1.3016, with a stop loss at the 1.2913 level. I’m going to go ahead and aim for roughly 1.33. I recognize that the jobs number coming out of both countries will make this very volatile, but I am willing to make this trade, with a small stop loss due to the fact that this level has been so important over the longer term.

Now that the jobs numbers have come out, the US jobs number was better than anticipated, while at the same time the Canadian jobs number was negative. We got an explosive candle to the upside right after the announcement as expected, but stopped right at the first area of resistance. Experiences pulled me that a lot of times the markets will stop at these areas when they cannot continue during these volatile days. Because of this I’m willing to go and take profit, but will be watching for a pullback that I can purchase as well. The knee-jerk reaction normally doesn’t break barriers later in the day, at least not without pulling back. So having said that I very well could enter this market again. I could’ve also move stop losses hired to just below the 1.30 level, with the most minimal amount of risk. However, it’s best to get out of the market on Friday when you can.