Some Thoughts On USDCAD

The logic of my system is to track past behaviour of currencies and then use this information to generate future buy and sell signals. Not all indicators are suitable for all currencies.

Previously the two indicators that are suitable USDCAD are Williams and Comm Channel. Williams and Comm Channel are oscillators => meaning whenever price falls too much, these indicators will call for a buy. Vice versa when price rises too much, these indicators will call for a sell.

However recent tests have shown that Williams and Comm Channel are no longer good indicators for USDCAD. So with this, assumption can be made that big moves or trend following direction can be anticipated for USDCAD.

Prominent support level at 1.1800 had been broken (1.1800 has turned into a resistance level) and USDCAD continues to move downwards. Current trend for USDCAD is down. Based on the assumption above, if trend following strategy applies, USDCAD is likely to fall further.

If you believe in this analysis, you may want to look for opportunity to short USDCAD. Current price of USDCAD is 1.1721.