Alagbe Simon analyzes USD/CAD using MetaTrader 4, spotting a bullish Harami pattern on the daily chart. He plans a buy entry above 1.40815 targeting 1.41269-1.41286, noting that oil price weakness from Russia-Saudi tensions pressures the Canadian dollar.
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Good day, my name is Alagbe Simon, a financial educator with Rally Academy. I welcome us to today's market analysis on USD/CAD. Let's go to our MT4. Okay, so we need to locate the instrument USD/CAD. How will we go about that? We come to File, New Chart, then we come to Major FL and we pick USD/CAD. We need to ensure that there's a dot after the USD/CAD because we are on the standard account. So USD/CAD with a dot. So once we do this, we have our trade panel look like this. We need to add the templates that we had, that's the green and red templates, to this chart. Once we do this, we'll be able to have a clearer view of what is happening on USD/CAD. So we can easily identify the bearish candles as well as the bullish candles. The bullish candles are in green and then the bearish candles are in red. Okay, so for today's analysis, we need to look at USD/CAD from the daily charts. So on the daily charts, we can see the Friday candle, which was a bearish candle, and this is the candle for yesterday. This formation is the bullish Harami, which is giving us a signal that we should be looking out for buy opportunities on USD/CAD. One other instrument that influences movements on USD/CAD is oil. So let us also quickly examine what is happening on oil. This is oil. Oil actually gapped down today and then has been trading bearish. We all know the reason for the bearish movement on oil— Russia and Saudi Arabia. There's this, uh, power play between those 2 major oil producers. And then Iran too is not also giving up. The one who is actually looking at what they too can do to push more oil into the market. So how is oil— how is it affecting this pair USD/CAD? Canada's major export product to the United States is oil. So if oil is not doing so well, then the Canadian dollar might also be affected. So that is why we usually also examine whatever is happening on oil. Whenever one is trading USD/CAD. So with this formation giving us a clue that we can buy USD/CAD, the next thing we need to do at this point is for us to identify our entry point for a buy on USD/CAD. Let's go to the 4-hour chart. So on the 4-hour charts, we can easily pick the high on USD/CAD. USD/CAD has been on a downtrend, so it has been trading bearish for a couple of days now. So since this particular day, which is around the 19th of March, since the 19th of March, USD/CAD has been bearish, bearish Sustained. Okay, this is the recent high on USD/CAD because if we look at it, USD/CAD has been having lower highs and lower lows, and this is also the recent low. This is the recent low at this point. So let's go to the hourly time frame to be able to pick out very close entry point. So on the hourly time frame We would see that USD/CAD has been able to go above this point, which is the more recent high on the hourly chart. All we just have to do now is to wait for this current candle to close above this high at 1.40815, so we can enter a buy trade. From this point, yes, around this 1.40965, we can enter a buy trade from this point and target around 20-30 pips from this point. So if we are targeting around 30 pips, we can target, we can target 1.41269, 1.41269. 1.41269 is around 20 pips. 1.41269, around 20 pips. 1.41269 is around 30 pips from the point at which we entered, uh, or we expected to enter our buy trade. So we can have our take profits around this point. For the buy trade. And then peradventure events override the formation we can see on the chart at this time, and then USD/CAD tend to be bearish later on, we should be looking out for sell opportunity below this point. This is 1.40120. In as much as USD/CAD is able to trade below this point we can have our sell trade. So we can place a sell from this price level and have our take profit before the low, the recent low. So our take profit can be around this point, which is 1.39690. So we enter the trade at 1.40120 and have our take profit at 1.39690. 94 if USD/CAD trade bearish later on. But from what we can see on the daily chart, USD/CAD ought to be a bullish one today, so we should actually be looking more at the buy signal. But peradventure some other happenings override that event, that is when we can target a sell. At 1.40120 with our take profit at 1.39690. The major— at this point, the major direction at this time is a buy from 1.40965, 1.40965 with our take profit at 1.41286. Let's make some money on USD/CAD today. Thank you.
