Watch for USDCAD setback to deepen
As expected, Tuesday’s stalling of demand translated into a deeper corrective move yesterday. That downside gained momentum as the day progressed, to take USDCAD towards a test of the trend defining 13 day moving average.
That point has been broken in Asia ,which reinforces the immediate negative tone despite the potential for a reaction to Asian selling.
Management and risk description
A move to 1.2954 means the stop can be lowered to break even.
Entry: Sell in 1.2980/85 area and any rally to 1.3010.
Stop: 1.3050 bid.
Target: 1.2954, 1.2935 and 1.2910.
Time horizon: Intraday, to 1500 GMT Thursday May 26.
Non-independent investment research disclaimer applies. Read more