Short term
Trade view / 27 June 2016 at 8:23 GMT

USDCAD bounce likely to extend

Partner at 3 C ANALYSIS / 3cAnalysis
United Kingdom
Instrument: USDCAD
Price target:
Market price:

Like all the other markets, last week's price action in this pair was dominated by Friday's turmoil from the Brexit shock. Before that, the market had gradually extended the previous week's upside rejection, and USDCAD consolidated below the 13-day moving average to test the lower end of the Keltner channel. 

But the abrupt change in sentiment reversed that decline and took prices to test the 100-day MA. Although the highs were not held, the bounce, coupled with an increasingly positive Keltner channel, is likely to remain the key background element with an early break of the 100-day MA sought as confirmation.

Management and risk description

A move in USDCAD to 1.3100 means the stop can be raised to breakeven or better.


Entry: Buy in 1.3000/10 area and any dip to 1.2886

Stop: 1.2768 offered

Targets: 1.3100, 1.3189 and 1.3287

Time horizon: This week, ending Friday, July 1, 1 p.m. London time

USDCAD second up week
2nd Up Week

Source: CQG Inc 

Bounce from low
Bounce from Low

Source: CQG Inc

USDCAD long-term chart
Long Term
Source: CQG Inc

— Edited by John Acher

Non-independent investment research disclaimer applies. Read more
AlanCollins AlanCollins
First target at 1.3100 met. The stop is now raised to break even


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