A few days ago, I posted a bullish
scenario on the USD/CAD
. Prices have fallen back to their annual lows, but I maintain my bullish
stance on a technical basis ahead of the US NFPs (note: Canadian employment figures are scheduled for 8 April). Prices came close to hitting the 1.285 level yesterday before they erased the day's losses and finished the trading session in the black. That's the first technical proof of a stabilization of prices, which could eventually lead way to a significan bounce so long as the NFPs support the US dollar
today. That's obviously a big assumption, and it would be very risky to bet on that right now (unless you were lucky enough to have entered the market at around 1.2860-70 yesterday). I'm going to be watching for further signs of a trend reversal ahead of the weekend. If today's candlestick
is firmly bullish
, then I will likely reaffirm my bullish
stance with even more conviction. If it weren't for the NFPs, I would say that the risk/reward on this pair is still favorable for buyers above 1.285 with stops just below the 1.28 handle.