Day trade
Trade view / 06 July 2016 at 7:18 GMT

Dips to find buyers in USDCAD

Analyst / PIA First
United Kingdom

USD index: Broken out of the corrective channel to the upside. Intraday signals are looking a little overstretched at current levels and there is scope for a retest of the channel breakout. Our system highlights dips to be bought. 

USD index (channel breakout):
Source: Saxo Bank

Some interesting patterns across the board today. Yen crosses have hit some intraday 261.8% extension levels. GBPUSD is at a monthly 161.8% extension. I think we could even get a turn in EURGBP (using correlation), but it is too early to tell (Doji top at the moment). 

We also have intraday 261.8% extension on AUDUSD and EURUSD (rallies to be sold). 


Monthly: After the Gartley formation, we are still long-term bears. Plenty of scope for a move to the upside without damaging this outlook. 

Source: Saxo Bank

Weekly: Looking for a move higher in a choppy CD leg of an AB=CD correction. Note that we are inside the cloud. This sometimes results in a lack of clear trend on shorter timeframes. The target level is 1.3370.

Source: Saxo Bank

Daily: Broke the sequence of five negative performances yesterday while posting a Bullish Engulfing daily pattern. Cloud support is now at 1.2935.

Source: Saxo Bank 

Four-hour: We did break the expending wedge formation to the upside but the rally could not be maintained. Yesterday’s buying has seen this level taken once more. 

Source: Saxo Bank

Market profile: Highlights the Opening Balance above yesterday’s Value Area. This normally highlights that the bullish trend will continue. 

30 minutes: Highlights the positive wave count with a possible fifth wave extension (Elliott Wave). It should be noted that commodity pairs can run to 423.6% (1.3096). The Relative Strength Index is starting to trend lower so we could be in for a short-term correction. 

Source: Saxo Bank

One hour: With the potential for a temporary top in place, we look to buy into dips. Trend line support is seen at 1.2953. The 50% pullback level is at 1.2942. This is the prime buy zone (1.2953-42). 

A stop should be placed below yesterday's Point of Control at 1.2927.


Create your own charts with SaxoTraderGO click here to learn more

Source: Saxo Bank


Entry: buying at the 1.2960-40 area. 

Stop: 1.2915.

Target: intraday 1.3050, medium-term 1.3186 and 1.3350.

— Edited by Michael McKenna

For more on forex click here.

Non-independent investment research disclaimer applies. Read more


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail