Trading Support and Resistance – USD/CAD

This week I will begin with my monthly and weekly Forex forecast of the currency pairs worth watching. The first part of my forecast is based upon my research of the past 20 years of Forex prices, which show that the following methodologies have all produced profitable results:

Let us look at the relevant data of currency price changes and interest rates to date, which we compiled using a trade-weighted index of the major global currencies:

Currency Price Changes and Interest Rates

Monthly Forecast February 2023

For the month of February, I forecasted that the EUR/USD currency pair would rise in value.

The performance so far is follows:

February 2023 Forecast Performance to Date

Weekly Forecast 12th February 2023

Last week, I forecasted that the GBP/CAD currency cross would rise in value, as it made an unusually strong counter-trend price movement over the previous week. Unfortunately, the cross fell by 0.35% in value, producing a small loss.

I made no weekly forecast this week, as there were no unusually strong counter-trend price movements in the Forex market last week.

Directional volatility in the Forex market is likely to increase over the coming week.

Last week was dominated by relative strength in the Swiss Franc, and relative weakness in the Euro.

You can trade my forecasts in a real or demo Forex brokerage account.

Key Support/Resistance Levels for Popular Pairs

I teach that trades should be entered and exited at or very close to key support and resistance levels. There are certain key support and resistance levels that can be monitored on the more popular currency pairs this week.

Key Support and Resistance Levels

Let us see how trading one of these key pairs last week off key support and resistance levels could have worked out:


I had expected the level at $1.3476 might act as resistance in the USD/CAD currency pair last week, as it had acted previously as both support and resistance. Note how these “role reversal” levels can work well. The H1 price chart below shows how the price rejected this level shortly after the start of last Monday’s New York session (typically a great time to enter trades in major Forex currency pairs) with a bearish inverted hammer candlestick, marked by the down arrow in the price chart below signaling the timing of this bearish rejection. This trade has been profitable, achieving a maximum positive reward to risk ratio of more than 2 to 1 so far based upon the size of the entry candlestick structure.

USD/CAD Hourly Price Chart

Ready to trade our Forex weekly forecast? Here’s a list of some of the best Forex trading platforms to check out.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.