Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading Premium Services.
The usdcad really is at a critical level now, much like the other major currency pairs. If one were merely looking at the lower timeframes, then it would be easy to get trapped without being aware of the solid weekly support that is currently being tested. The weekly timeframe below displays two red horizontal lines. These lines mark the 2008 range in which the market traded, between1.0320 and .9820. If the current bearish momentum continues, then it would not be unreasonable to expect a continued run down to further support levels. The first significant level of support would be 1.0000, followed by the bottom of the old range at .9820. It is worth bearing in mind though, that this could possibly be the right tip of a weekly bullish reversal setting up.
Since there are two, both credible possibilities that may play out, we need to be on the alert for confirmation regarding direction. This is where the 4 hr chart comes in. The red horizontal line on the one below indicates the support area that has been holding so far at 1.0230. So, although the down trend is very well intact, it has been unable to breach this support. This setup has potential written all over it, for trade opportunities, but timing is key.
Trading Strategy
Watch the 4hr timeframe for either a solid break below 1.0230 to go short on a retracement. The targets for a short setup are 1.0000, followed by .9850, just ahead of the old weekly range support area.
If however, the 4 hr trendline gets broken, I will be concentrating on long setups. I would look to go long after a retest. My target for the long would be 1.0360.
Thank you for reading , and please do leave a comment and let me know what your thoughts are 
Another post I did that focused on this pair is here : http://www.winnersedgetrading.com/usdcad-technical-analysis-trade-setup/
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
Other useful blogs:
Forex Crunch: Indicators- UK Retail Sales Jump More Than Expected- Pound Rises
The GeekKnows- Daily commentary on eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
