Technical Analysis: USD/CAD Soaking up Sellers

May 13, 2015

Over the last week or so, both our Forex Market Update and Twitter profiles have been been talking about a possible USD/CAD buy setup.

USD/CAD Daily:
Click on chart to see a larger view.

Long term, price is trending up and we have what now looks like a bull flag running down to the trend line.

USD/CAD Hourly:
Click on chart to see a larger view.

Price has tested the bottom of the flag 3 times now, with the latest touch, barely coming into our marked demand zone before being rejected higher.

After putting the idea out there on Twitter, a few alternatives came back that I have to share.

The first from @Delta_Three showing that if a middle line is drawn as trend line support of the broken short term trend line, a range has also been completed.

The next chart from @DougMcDougall shows the bull flag channel drawn at a tighter angle with some areas to watch out for. Interestingly, since this chart was Tweeted yesterday, price rejected off the top of Doug’s channel and made a new low back into demand.

If price gets sucked lower for another touch into the demand zone then we are looking at a break but there is definitely a low risk buy play at current levels.

Do you use social trading in your overall strategy? Leave a comment below or mention @VantageFX on Twitter.

Dane Williams – @VantageFX

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