Direct from the desk of Dane Williams.
With USD/CAD holding daily support, we've got an interesting trading opportunity forming.
We've been following this one on the blog for a few weeks now, but take a look at how the price action has played out around the zone on the updated chart below.
USD/CAD Daily:
While price poked its head below the zone, there was no meaningful break-out and we're now already clearly back above it again.
This is another example of why my trading strategy is all about waiting for confirmation of a break/hold by zooming into an intraday chart and using short term levels to manage your risk around.
As for this current level, I find it interesting that USD/CAD is clearly holding support, while the USDX that we spoke about yesterday, is still capped by resistance at the top of its range.
Add the absolute disaster that is Oil markets right now and things could be looking bullish for USD/CAD.
If you're happy that higher time frame support has held, zoom into your hourly chart and find an area of short term resistance turned support to get an entry.
Remember, there's no rush - Follow the market flows and buy on the retests.
If this higher time frame support zone has held, you're going to get plenty of opportunities to get in.
Best of probabilities to you,
Dane.
FOREX BROKR | Hive Blog
Higher time frame market analysis.
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