Well done to those who bought 1.3187/1.32!
USD/CAD:
Pressured by rising WTI prices on trade headlines, the USD/CAD pulled back and shook hands with a particularly interesting area of H4 support Tuesday between August’s opening level at 1.3187, an intersecting channel support (extended from the low 1.3015) and the round number 1.32 (yellow). For those who read Tuesday’s briefing you may recall the piece highlighting this zone as a potential buy, targeting daily resistance at 1.3251 as the initial take-profit zone.
As is evident from the charts, the said daily resistance level has yet to enter the fold. In terms of where the unit is positioned on the weekly timeframe, however, upside momentum has diminished over the past couple of weeks, shaped in the mould of selling wicks south of the 2017 yearly opening level at 1.3434, closely shadowed by trend line support-turned resistance etched from the low 1.2247.
Areas of consideration:
Traders who remain long this market today, holding out for the daily resistance level at 1.3251 is certainly an idea. At this point, reducing risk to breakeven is something to consider, with the option of liquidating a portion of the profits. A run above 1.3251 has the 200-day SMA to target close by at 1.3301, sited just above the 1.33 handle on the H4 chart, so traders can simply use 1.33 as the next upside target for ease of reference.
Pressured by rising WTI prices on trade headlines, the USD/CAD pulled back and shook hands with a particularly interesting area of H4 support Tuesday between August’s opening level at 1.3187, an intersecting channel support (extended from the low 1.3015) and the round number 1.32 (yellow). For those who read Tuesday’s briefing you may recall the piece highlighting this zone as a potential buy, targeting daily resistance at 1.3251 as the initial take-profit zone.
As is evident from the charts, the said daily resistance level has yet to enter the fold. In terms of where the unit is positioned on the weekly timeframe, however, upside momentum has diminished over the past couple of weeks, shaped in the mould of selling wicks south of the 2017 yearly opening level at 1.3434, closely shadowed by trend line support-turned resistance etched from the low 1.2247.
Areas of consideration:
Traders who remain long this market today, holding out for the daily resistance level at 1.3251 is certainly an idea. At this point, reducing risk to breakeven is something to consider, with the option of liquidating a portion of the profits. A run above 1.3251 has the 200-day SMA to target close by at 1.3301, sited just above the 1.33 handle on the H4 chart, so traders can simply use 1.33 as the next upside target for ease of reference.
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