USDCAD - Rejects channel base; Bullish above .9720
In our last medium term USDCAD call we hit our second medium term target .9841 (from an entry of .9697) but selling pressure last week ‘took out’ our stop (on balances) at .9779. However, losses were rejected close to .9730, a 61.8 percent pullback level of gains from .9632 - .9887, on Friday. This resulted in price moving back inside the daily channel formation. Although we need to see a break of .9880, channel top, to confirm the continued bullish momentum, the bias is assessed to be bullish. Our call is a Bullish above a stop at .9720.
The profit targets are .9880, .9942 and 1.0000.
The risk however would be with selling through a stop of .9720.