USDCAD – Buying on setbacks
A sequence of two up weeks ended over the last five days. Early price action saw USDCAD capped by the 200-day moving average with profit taking selling driving the currency pair strongly lower Wednesday and Thursday. But after reversing the previous week's entire net rise, demand, attracted at the 100-day line bounced prices back above the 13-day average to leave the market only marginally lower on the week. Positive signals for sentiment need to be confirmed by a move through 1.3244 but I'm looking for the topside to develop in the coming days.
Management and risk description
A move above 1.3244 means the stop can be raised to break even or better.
Entry: Buy in 1.3160/70 area and any 1.3105 dip
Stop: 1.2995 offered
Target: 1.3244, 1.3330 or even towards 1.3496
Time horizon: This week, ending Friday September 30, 12 noon GMT
Non-independent investment research disclaimer applies. Read more