FX.co ★ USD/CAD – on its way upwards

Good day, dear traders! I present to your attention, a trading idea for the USD/CAD pair.

The US dollar is strengthening against all currency pairs, winning over majors such as EUR/USD, GBP/USD, and AUD/USD. The fall against the dollar is almost vertical, as not everyone can jump into such movements. However, there is a pair that remains relatively calm - the USD/CAD pair. On Wednesday, good data on inflation was released, so the loonie was positive, even against the background of the strong dollar.

As you can see, a buy signal was formed yesterday, as part of the Price Action strategy:

Once again, the pair is growing for the second month. And, against the background of a very strong annual stop level of sellers in the area of 1.3500, the pair looks very attractive for medium-term purchases. From the current prices, although the risk/profit ratio is 1 to 2, the breakdown itself can be volatile. On the other hand, if you focus on the closing of daily candles, the ratio can be 1 to 3, which is generally not bad, given the crisis that we are facing at the moment.

Good luck in trading and control your risks!