USDCAD forex weekly & daily
The USDCAD trend has been bearish since March 2020 and just this week it marked a new yearly low. But there are some graphical tricks that make me think of a possible BUY with a potential gain of 200 pips.
The Buy that I propose is not yet classifiable as a bullish reversal but it has considerable potential that can be exploited for the next few weeks.
1. Weekly and Daily diverging prices – Demand & Supply oscillator
I report below the Daily and Weekly chart where it is noted that the Demand & Supply oscillator [read details here] has created increasing lows in divergence with the lows of prices. The Demand & Supply oscillator was not created to create trading signals on the daily but with the divergences it is a good filter and indicator of the strength of the downside.
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As you can see, the setting on the Daily and Weekly charts already shows signs of subsidence and weakening of the bearish structure. So the first conclusion is that if the price has to react to the upside, it will do so now, quickly and above all by keeping the minimum printed at 1.2688 as a stop loss.
2. Intraday trading with Demand & Supply oscillator
The second reason that led me to search for the buy is on the H1 chart where I displayed 2 interesting behaviors (which I explained in more detail in the following video):
every time the oscillator is at the minimum it has created good buying opportunities and profits
whenever the oscillator was high it created good bearish profits
in the last 2 days, the oscillator has not discharged to the minimums and has not even positioned itself at the maximums on the closing prices … a sign in my opinion that new future highs are expected
3. Pivot Point Weekly and Daily
As explained in my XM webinars on pivot points I give a lot of importance to how prices open on the Pivot Daily and Weekly levels. In this last week, despite the absolute minimum of 2020, we have seen closing prices above the daily Pivot and a weekly open price above the Weekly Pivot is expected. All conditions that for those who have followed me for a long time, indicate BUY opportunities.
4. Averages at 200 suggest BUY – new analysis method
There is also another reason that prompted me to BUY but I will only talk about it on Monday at 20:00 at the free webinar with XM to which I invite you to register from here: