USDCAD swept lower after Fed Chair Powell’s dovish remarks, the current down wave signals a deeper correction in the remainder of 2024 after losing 1.36 support level.

As a result, my August 19’s long trade plan has exited in another loss after holding for 20 hours only:

https://www.finlogix.com/analysis/20240819/usdcad-intraday-analysis-and-trading-plan-for-august-19-2024

A new overall record of 3 wins and 13 losses.

There are 4 upcoming high-impact economic reports in the US and 1 in Canada this week.

Re-assessing USDCAD’s high timeframe candles:

Yearly Candle: Last check is a Green Body with a Longer Head Wick now a Green Long Upper Shadow

Monthly Candle: Last check is a Red Long Upper Shadow with a Medium Body now a Red Body with a Longer Head Wick

Weekly Candle: Previous close is a Red Body with Equal Wicks current is a Green Shaven Bottom

Daily Candle: Previous close is a Red Body with a Longer Tail Wick current is a Green Shaven Bottom

In today’s analysis, I switch back to July 11 swing low to August 5’s swing high as today’s retracements’ points of view, especially its bearish extension levels.

USDCAD has critically lost the 1.36 support level after Fed Chair Powell’s dovish remarks on Friday leaving a bearish 4H candle momentum.

With a weak intraweek opening, the current consolidation rally is likely to have a PoD to the downside which targets the 1.618 bearish extension level.

It’s highly impossible to reclaim the 1.36 support level magically understanding the Fed’s confirmed cutting of rates before 2024 ends.

For now, the US dollar is very weak versus the Canadian Loonie.

In today’s trade plan, I am shorting USDCAD’s breakout rally attempt from its current consolidation.

There’s a big and wide 4H bearish momentum candle that stands in the way for the bulls.

By entering at the 1.3525 level, the take profit will be collected near the bearish 1.618 extension level while limiting the loss at 1.3550 only.

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top-tier banks via ACY Connect.

Good luck and have a great trading week ahead.

All trade ideas I share are my views and for my trades only.

USDCAD Intraday Analysis and Trading Plan for August 26, 2024

Aug 26 2024

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