Here is today’s Nov 29 – Forex analysis of USDCAD currency pair.
My family and I went on a week vacation to Asia in Hong Kong, which is why I wasn’t active in updating my Forex analysis.
Here’s a picture of us in Hong Kong Disneyland. Had a blast!
Nov 29 – Forex analysis of USDCAD – Chart Analysis
Below is a chart of today’s action as of 10:13 AM Pacific time.
If I may, let me recall my thesis back in Nov 7th below:
- Uptrend – I mentioned that the pair is currently on an uptrend
- The currency pair dipped on Nov 6th but rallied back up on Nov 7th
- The candle, however, did not touch the 20 SMA, which was my target entry point
The trend is your friend
As I mentioned in my last Forex analysis of USDCAD pair, “the trend is your friend until it bends”. So as we read through the succeeding days after Nov 7th, below are what we can derive from the chart:
- The dip to the 20 SMA followed through two days later on Nov 9th
- On Nov 10th, we can see a doji candlestick pattern formed
- Then from there on, the price rallied back up
- It is also noted that a two-day dip occurred again on Nov 21 & 22
- Nonetheless, the currency pair rallied again thereafter
I did go long on the USDCAD pair. As I mentioned, I saw the doji candlestick pattern formed back in Nov 10th.
A “doji” is usually an indication of an indecision and potentially a reverse in direction. Now since the action was a dip to the 20-day moving average, it was more likely that the “doji” was a signal that the dip was over and will then continue on with the trend, which is the uptrend move.
I bought into the currency pair back in Nov 11th and took a long position.
Swing trade strategy
With this long position that I took, I decided that this time I’ll do a swing trade strategy instead of my usual day trading one that I more often take.
The reason for this is basically the thesis for “the trend is your friend until it bends”. I decided to ride the uptrend.
So until I see a potential signal for reversal or the end for the uptrend move I would remain in my long position. And yes, I am still long as of this writing and I already have an unrealized gain on my position as you can imagine.
Another point of view or thesis
There is also another thesis to be said on this chart. I’m sure you already noticed as clearly seen on the chart. The former resistance, looking left on the chart, and that it has already been broken, now becomes the new support.
So here are the other theses to be said:
- Former resistance becomes new support
- The Nov 9th dip to this support area was the first time it happened thus it is a very fresh one
- There are likely a lot of buyers still in that support area
- Buyers indeed proved to be strong as seen on the apparent rally afterwards
So there you have it folks. My short and sweet Nov 29 – Forex analysis of USDCAD currency pair.
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