USDCAD: Oil Rally Supporting CAD Strength

Mon 3rd March 2023 : Daily Forex Price Action

Today we’re looking at Trading Setups in:

• USDCAD
• CADJPY (Covered in Video)

Today we’re looking at Trading Setups in: USDCAD & CADJPY (Covered in Video)

CAD continues to top the day traders table, largely due to overnight news on Oil.

OPEC cut Oil production unexpectedly leaving the market asking questions over inflationary pressures.

This data fueled the CAD strength further seeing USDCAD in particular continue it’s recent path lower.

USDCAD traded below key support of 1.3650 and continued lower by 170 pips.

Price has now come into a strong trend line support where sellers could take some profits.

This may then cause price to rally back into resistance for further selling opportunities.

If price comes into the previous H4 highs of 1.3560 and rejects, this could be one selling opportunity.

Another could come in the form of a higher time frame pullback into the previous lows at 1.3650.

Either way, sellers would look to target key supporting levels below at 1.3450 or 1.3260.

Technical Observations

• The CAD is S1 and USD is W3 on the day traders table.
• Price has traded through the supporting lows of 1.3650.
• Sellers could look to target the key supporting levels of 1.3450 or 1.3225.
• Minor resistance at 1.3560 could be a possible entry for sellers. 
• Alternatively, if price climbs to reject key resistance at 1.3650, sellers could enter here.