CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

77.48% of retail investor accounts lose money when trading CFDs with this provider.

Failed high, could the USDCAD continue lower?

Published: 18.11.2022
by Joseph Jeffriess

Happy Friday, today’s focus is on the USDCAD after sellers forced a failed high in yesterday’s session.

Yesterday’s price action was interesting as it showed buyers had little fight above 1.3350, with weaker oil prices. Philly fed manufacturing index may have also influenced as it dropped to -19.4, well below the -6.0% expected. Let’s get back to price and the current trend pattern, as that’s the main evidence I’m following. Yesterday’s failed high maintains a normal trend as the series of LHs and LLs continues.

We are looking to see if sellers have control and if they now set a new LL confirming yesterday’s LH and maintaining the series. A move down to 1.3250 that stalls and reverses is a warning. If buyers can break 1.3350 after holding at the support could be a warning of a short-term change in momentum.

We want to see a new leg lower from sellers that can test and break below 1.3250 support and the 1.3221 low. This will continue to trend pattern and could tell us that the downtrend has further to run. Traders will also need to keep an eye on oil prices as they could also have an impact on the current picture.

USDCAD Analysis Video

Thanks for stopping by. Good trading and have a great weekend.


* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.

Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.

Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.