January 03, 2025 at 11:23AM
Canadian Dollar Futures (6C Mar 2025): Day Trading Analysis and Key Levels [Jan 03, 2025]
The Canadian Dollar Futures (6C March 2025) are currently trading at 0.69610, testing yesterday’s Value Area High (VAH) at 0.69605, which may act as a temporary support level. Below is an analysis of key levels for today and possible scenarios for both bulls and bears.
Key Levels for Canadian Dollar Futures Today
Bullish Levels to Watch
0.69659: Today’s developing VWAP, acting as an initial resistance level. Sustained trading above this level indicates potential bullish momentum.
0.69665–0.69670: The Value Area High (VAH) of two and four days ago. Bulls must break above this confluence zone to gain further strength.
0.69705: The Point of Control (POC) from December 30th, a key price magnet for bullish continuation.
0.69735: The POC of December 31st and a significant resistance level.
Bearish Levels to Watch
0.69525: Yesterday’s POC, a naked level that could act as the first support if price moves lower.
0.69564: Yesterday’s closing VWAP, aligning closely with other bearish levels.
0.69455: Yesterday’s Value Area Low (VAL), a naked level and potential target for bearish moves.
Day Trading Outlook for Canadian Dollar Futures
The Canadian Dollar Futures are range-bound, making it challenging to identify a strong directional bias. However, the key levels outlined above provide traders with clear junctions to monitor for potential trades.
Example Trade Scenarios Using Key Levels
Scenario 1: Short Opportunity
Entry: If price approaches today’s developing VWAP (0.69659) or Value Area High (0.69665–0.69670) and shows rejection, a short position may be considered.
Profit-Taking Plan:
Partial Profit 1: Near yesterday’s POC (0.69525).
Partial Profit 2: At yesterday’s closing VWAP (0.69564) or Value Area Low of Dec 27th (0.69540).
Final Exit: At yesterday’s Value Area Low (0.69455) or slightly above.
Scenario 2: Bullish Breakout
Entry: If price breaks above 0.69670, indicating bullish strength, enter long.
Targets:
First Target: 0.69705 (POC of Dec 30th).
Second Target: 0.69735 (POC of Dec 31st).
Final Target: At or slightly above 0.69725 (closing VWAP of Dec 30th and Dec 31st).
What Canadian Dollar Futures Traders Should Watch For
Above 0.69659: Watch for a potential breakout, with resistance at 0.69670, 0.69705, and 0.69735. These levels are key junctions for bullish continuation.
Below 0.69525: Bearish momentum increases, with targets at 0.69455 and potentially lower.
Range-Bound Trading: Current conditions suggest range-bound behavior. Monitor reactions at the levels mentioned for opportunities to trade in either direction.
Trade Canadian Dollar Futures (6C) at your own risk, and align strategies with your market outlook. For more perspectives, visit ForexLive.com.
This article was written by Itai Levitan at www.forexlive.com.
