Bearish signs on USDCAD gather
Last week’s signals for USDCAD were bullish and these have been confirmed with sentiment posting a second higher weekly low and high in a row for an initial gain of 1 ½ Big Figs. However, sellers have returned to the market and the subsequent formation of two daily Shooting Stars on Wednesday and Thursday are a warning to bulls as it switched daily signals to bearish on Friday. This switch too has been confirmed and a weekly Shooting Star has pointed signals lower over this week.
Management and risk description
Allow room to sell bounce and lower stop to entry if the first target is met.
Entry: sell at market and 1.3103, Friday's open
Stop: 1.3201, last month's top.
Target: 1.2832, the 2 week low and 1.2763, last month's base.
Time horizon: until 1200 GMT Friday.
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more