USDCAD forex pair supply and demand analysis

USD/CAD is the forex ticker that represents the US Dollar – Canadian Dollar currency pair. The USD/CAD rate, as indicated on the live chat, shows traders how many Canadian Dollars are required to buy one US Dollar.

We don’t need to pay attention to fundamental analysis, FOMC or even interest rate releases for the USDCAD Forex cross pair if we are trading the longer-term trend. We can see below the USDCAD supply and demand technical analysis for the monthly timeframe. There is a clear trend with a very strong imbalance created around 1.32 price level. That does not mean that we won’t be able to trade the USDCAD Forex cross pair until the price reaches that imbalance, it might take some months.

USD/CAD price chart analysis

In the meantime and bearing in mind that there is a clear long bias, we can go long using smaller timeframes and even other strategies using indicators. We are waiting for a bigger pullback before going long.

Remember this is a single timeframe analysis, not enough to make a trading decision.

No need to pay attention to fundamental analysis, you can read about it if you want but only if it won’t prevent you from placing a trade. However, the bigger picture trend is bullish with USDCAD Forex cross pair being in a clear monthly uptrend creating new strong demand imbalances.

The cycle-sensitive Canadian Dollar may fall in the week ahead if growth prospects from the US – the source of Canada’s economic vitality and primary destination for its exports – darken.

The Canadian Dollar will be paying particularly close attention to the publication of preliminary Markit PMI data for April out of the world’s largest economy. A worse-than-expected print could hurt CAD and cause it to retrace some of its recent gains. Even if the data registers in-line with forecasts or slightly better, the fundamental uncertainty posed by the coronavirus will likely continue haunting the Canadian Dollar.

USD/CAD forex price action analysis

This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind. 

USDCAD supply and demand imbalances

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.

Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on Forex.

You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.

Join our supply and demand stock trading course if you want to learn how to trade using our supply and demand trading strategy.