Trade view /
07 March 2018 at 8:29 GMT
The dollar moved lower and equity markets came under fresh selling pressure as US futures declined by over 1.0%. There were renewed declines in oil prices as risk appetite deteriorated with the Canadian dollar also under pressure again
The Canadian PMI index strengthened to 59.6 for February from 55.2 the previous month which helped underpin confidence in the outlook.
The Canadian dollar was still subjected to very choppy trading with sharp gains as USDCAD retreated from the key 1.3000 level. The pair hit lows near 1.2865 before rallying back above 1.2900 as trade fears persisted. Reports of Cohn’s resignation were important in undermining the Canadian dollar with USDCAD around 1.2930 ahead of the Bank of Canada rate decision later in the day
The 161.8% Fibonacci extension is located at 1.2961 from 1.2247 to 1.2688.
Broke the sequence of six positive daily performances.
Selling posted in Asia.
We have a 38.2% Fibonacci pullback level of 1.2792 from 1.2247 to 1.2688.
Bespoke support is located at 1.2805.
Although the anticipated move lower is corrective, it does offer ample risk/reward today.
USDCAD four-hour chart
Management and risk description
If stop or target levels are not reached, traded price at 21:00hrs (UK time) or in the case of Asian/Pacific ideas 16:00 hrs (UK time) the following day, will be used as a closing level for performance analysis.
Intraday – we look to sell at 1.2950
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more
A compiled overview of Trade Views provided on TradingFloor.com is found here