Our free forex signals service trade today is a buy order on the USD/CAD pair.
The USD/CAD is into a temporary decline after failing to take out a strong dynamic resistance. After ending its current retreat, the price could give birth to a new bullish momentum. It’s traded at 1.2438 level above the 1.2436 static support. In the short term, it stands above strong support levels, downside obstacles, so we cannot exclude a potential new leg higher.
The pair dropped a little as the Dollar Index was into a corrective phase after registering only a false breakout through the 94.50 obstacle.
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US Producer Price Index Coming Next
Fundamentally, the USD needs a bullish spark to be able to start appreciating again. Today, the US PPI is expected to report a 0.6% in October after 0.5% in September, while the Core PPI may register a 0.5% growth compared to 0.2% in the previous reporting period.
Also, the Fed Chair Powell’s remarks at an online conference hosted by the Federal Reserve Bank. Tomorrow, the United States inflation data, the CPI and the Core CPI could be decisive and could change the sentiment.
Technically, the USD/CAD pair is almost to reach the weekly pivot point of 1.2427 level and the ascending pitchfork’s lower median line (lml).
We have a confluence area at the intersection between these downside obstacles. A false breakdown with great separation, a bullish engulfing, or any other reversal pattern printed here could signal a new leg higher.
Only a valid breakdown through the lower median line (lml) could really announce a deeper drop and could invalidate an upside continuation.
Free forex signals – BUY USD/CAD at 1.2469
Free forex signals entry price and take profit
Instrument: USD/CAD
Order Type: BUY STOP
Entry price: 1.2469
Stop Loss: 1.2418
TP1: 1.2561
My Risk: 1%
Risk / Reward Ratio: 1/1.8
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