“Why Traders Are Sleeping on USD/CAD – The Easy Pair to Catch Big Move

 

Why Traders Are Sleeping on USD/CAD – The Easy Pair to Catch Big Moves

Why Traders Are Sleeping on USD/CAD – The Easy Pair to Catch Big Moves

By TBIG_Fx | Trade Smart, Trade Confident

Introduction

When it comes to forex trading, many retail traders flock to the “popular” pairs like EUR/USD, GBP/USD, or gold (XAU/USD). While these are good instruments, one pair that consistently provides easy-to-read movements and high-probability setups is USD/CAD.

Known as “the Loonie,” USD/CAD reflects the relationship between the U.S. dollar and the Canadian dollar. What makes it unique is its predictable reaction to oil prices and economic data. Traders who understand this pair can consistently catch moves while others chase volatility in less predictable markets. In this blog, we will uncover why USD/CAD is underrated, show practical trading examples, and explain how you can take advantage of it.

For more mentorship and trading strategies, visit our website and join our free Telegram channel.

Why USD/CAD Is Easy to Trade

1. Strong Correlation with Oil

Canada is one of the world’s largest oil exporters. When oil prices rise, the Canadian dollar strengthens. When oil prices drop, the CAD weakens. This means that USD/CAD often moves in direct response to oil. A trader who watches crude oil charts gains a clear edge in predicting USD/CAD direction.

2. Clear Trends

Unlike pairs like GBP/JPY which are extremely volatile, USD/CAD tends to move in smoother, more consistent trends. This makes it beginner-friendly and less stressful to trade.

3. Fundamental Simplicity

The two main drivers of USD/CAD are:

  • Oil Prices (impacting CAD)
  • U.S. Dollar Strength/Weakness
Keeping track of these two is far easier than analyzing more complex cross pairs.

How Big Traders Trade USD/CAD

Example 1: Oil Correlation Trade

Oil prices spike from $70 to $75 per barrel. A big trader knows this strengthens CAD. They short USD/CAD at 1.3650 targeting 1.3550, with a stop above 1.3700. Result: a smooth 100-pip move in their favor.

Example 2: Economic Data Play

The U.S. releases stronger-than-expected NFP data. USD strengthens across the board. A trader buys USD/CAD at 1.3400 with a target at 1.3500. The move happens within a few hours, delivering clean profits.

Example 3: Range-Bound Trading

Sometimes USD/CAD consolidates between 1.3200 and 1.3400. Big traders buy at the bottom and sell at the top, repeating this cycle until a breakout happens. This strategy is simple yet highly effective.

Historical Examples of USD/CAD Moves

  • March 2020: Oil crashed due to the pandemic, USD/CAD skyrocketed from 1.33 to 1.46 in weeks. Traders who followed oil profited massively.
  • June 2021: Oil recovered, USD/CAD dropped from 1.28 to 1.20, a 800-pip downtrend that was highly predictable.
  • October 2022: As the Fed tightened monetary policy, USD/CAD surged again, creating clear long opportunities.

Practical Tips for Trading USD/CAD

  1. Always monitor crude oil prices before trading USD/CAD.
  2. Use daily and 4H charts to catch trend directions.
  3. Look out for U.S. NFP, CPI, and Bank of Canada interest rate decisions.
  4. Mark key support/resistance zones like 1.3000, 1.3500, and 1.4000.
  5. Apply disciplined risk management—avoid overleveraging.

Trader Testimonials

“I used to only trade EUR/USD, but after switching to USD/CAD I realized the movements are much easier to read. I now make more consistent profits.” – James, Canada
“TBIG_Fx mentorship showed me how to use oil charts to trade USD/CAD. It’s now my favorite pair.” – Linda, South Africa
“I caught a 200-pip swing in USD/CAD last month by following their Telegram tips. Simple but powerful.” – Emmanuel, Nigeria

FAQ

1. Why is USD/CAD called “the Loonie”?

Because of the Canadian $1 coin that features a loon bird, making CAD nicknamed “the Loonie.”

2. Is USD/CAD beginner-friendly?

Yes. Its smoother movements and oil correlation make it one of the easiest pairs to trade.

3. What is the best time to trade USD/CAD?

During the New York session when U.S. and Canadian markets overlap, providing strong liquidity.

4. Do I need to follow oil prices?

Yes, oil is a key driver of CAD strength or weakness. Always check crude oil charts before trading USD/CAD.

About Us

At TBIG_Fx, we specialize in teaching traders how to handle forex pairs and commodities with practical strategies. Our mentorship programs, free Telegram signals, and guides empower traders across Africa and the world.

🌍 Website: https://soloist.ai/tbigfx
📧 Email: philmonswilliam@gmail.com
📲 Telegram: t.me/TBIG_Fx

Privacy Policy

We respect your privacy. TBIG_Fx does not share your information with third parties. All content is for educational purposes only. Trading forex involves risk—trade responsibly and only with money you can afford to lose.

© 2025 TBIG_Fx | All Rights Reserved

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