Oversold USD/CAD Set for a Pull Back - Brace for Quick 25 Pips
|The commodity currency USD/CAD is fell sharply from 1.3180 to 1.31 30 area due to a weaker dollar. On the other hand, optimization around the U.S. China trade second phase trade talks are keeping the WTI crude oil prices.
Since Canada's most of the income comes from crude oil exports, higher prices increase the demand for the Canadian dollar as traders buy CAD to make payment for crude oil imports.
Technically, the USD/CAD is facing strong support at 1.3130, the double bottom level. The pair has formed a series of Doji candles above this area, which is suggesting strong odds of a bullish reversal.
If you take a look at the RSI, the value of it is falling below 20. Therefore, the bear may get exhausted, and we may see bulls entering the market.
| Support | Pivot Point | Resistance |
| 1.3108 | 1.316 | 1.3189 |
| 1.3079 | 1.3079 | |
| 1.2998 | 1.3322 |
Traders are advised to keep an eye on 1.3130 area as above this; we may see buying trades until 1.3160 and even 1.3175. The bearish breakout may extend selling until 1.3100 and i.3060.
USD/CAD - Trade Setup
1) Buy Stop
Entry: Buy Stop 1.3150
Take Profit: 1.3175
Stop Loss: 1.3125
2) Sell Stop
Entry: Sell Stop 1.3125
Take Profit: 1.3100
Stop Loss: 1.3145
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