USDCAD fall looks like deepening
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.
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.
— Edited by Adam Courtenay
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