Day trade
Trade view / 07 June 2016 at 5:56 GMT

USDCAD fall looks like deepening

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

USDCAD was dominated by selling interest yesterday. A second down day in a row confirming the break of the 13 Day Moving Average and trading to new four-week lows.

The market has now corrected half of the rise from May’s low and although oversold extremes may inhibit the extent and timing of losses, there is an obvious negative bias with scope to follow the bearish Keltner channel lower still.

Management and risk description

A move below 1.2795 means the stop can be lowered to break even.

Parameters

Entry: Sell in 1.2825/30 area and any rally to 1.2848.

Stop: 1.2887 bid.

Target: 1.2803, 1.2771 or even 1.2727.

Time horizon: Intraday, GMT 1600.

Selling deepens
Selling Deepens
 Over sold
Oversold
 Long term
Long Term
Source: All charts from CQG

— Edited by Adam Courtenay

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Non-independent investment research disclaimer applies. Read more
1y
Invinci Invinci
Hi alan, at what level do you see the oversold? Is there a risk now it follows the bottom Keltner channel?
1y
AlanCollins AlanCollins
Think its oversold at trhe moment but that situation can very often be resolved in time rather than price - it just may slow the downside. Think there is very good chance that USDCAD will follow the Keltner channel lower - onlya risk though if you look to buy, somethign I wouldn't look at in the short term.
1y
AlanCollins AlanCollins
second target met at 1.2771. Scope to 1.2727 as trend strong but stop now no higher than 1.2816

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