USD/CAD: Lower Price Action Turns Into Choppy Conditions -

USD/CAD: Lower Price Action Turns Into Choppy Conditions

Nov 21, 2023Jeremy ParkinsonFinance0

Intriguingly while day traders may feel perplexed, if they look at a one month chart they will see technically the USD/CAD has actually sold off rather well since hitting a high of nearly 1.39000 on the 1^st of November. Speculators have likely faced rather perplexing trading results with the USD/CAD over the past handful of days. After the Consumer Price Index inflation report from the U.S. last Tuesday, the USD/CAD which was trading at a high of nearly 1.38440 nosedived and hit a value around 1.36550 on Wednesday. Unfortunately for some day traders, the USD/CAD has turned rather chaotic since this low and the choppy conditions have made for troublesome reversals.As of this morning, the USD/CAAD is near the 1.37270 ratio which is below yesterday’s high that came within sight of the 1.37500 mark briefly. Today Canada will publish a host of inflation reports via their Consumer Price Index statistics. Intriguingly while many other major currencies teamed against the USD have gotten stronger, the CAD has not developed a sincerely strong downward near-term trend. USD/CAD Speculative Sentiment and Troubling HeadwindsThis may lead some speculators to believe bearish momentum in the USD/CAD will in fact be demonstrated sooner rather than later. However, day traders who have been burned by the recent whipsaw reversals in the USD/CAD may feel rather skeptical about pursuit of downward momentum in the near-term. The headwinds displayed the past handful of days certainly is a reason for caution, but the question is how financial institutions will positions their outlooks.Intriguingly while day traders may feel perplexed, if they look at a one month chart they will see technically the USD/CAD has actually sold off rather well since hitting a high of nearly 1.39000 on the 1^st of November. Yes, there have been volatile reversals higher that have been exhibited, but the USD/CAD is within the lower elements of its one month price range. The low for the USD/CAD the past month of trading was seen on the 6^th of November around the 1.36300 ratio. USD/CAD Risk Management and Holiday Trading to Come

The U.S Thanksgiving holiday will be celebrated on Thursday, meaning USD/CAD volume will start to erode on Wednesday, be super light on Thursday and remain limited on Friday.

Traders who are inclined to pursue bearish momentum in the USD/CAD cannot be blamed, but they should certainly use solid risk management based on the past handful of days regarding the choppy results which have been seen.

Traders should not become overly ambitious. However, targeting the 1.37000 level below appears to be the psychological mark many sellers would have, meaning day traders may want to actually place take profits for quick hitting trades above this level if they are looking for bearish velocity – around the 1.37200 to 1.37150 marks.

Canadian Dollar Short-Term Outlook:

Current Resistance: 1.37490

Current Support: 1.37210

High Target: 1.37695

Low Target: 1.36480

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