I bought USD/CAD from 1.0250 and will add on dips close to 200 day MA which is currently acting as strong support.
DXY is gaining strength. MACD crossover is bullish. 55 day MA is above 200 day MA which too is bullish. 200 day MA is in line with the rising bullish trendline.
If the bounce sustains, long-term bullish target would be 1.05-1.06 range which has acted as resistance almost 3-5 times on the weekly. if the trade works I will sell 3/4th of my position in the 1.04-1.05 zone and leave the trailer for possible 1.06 breakout in the long term.
CAD gains if BoC raises rates (hasn't shown any intentions) or when commodities (especially bullish Crude Oil) rises. These two events would negate the trade.
Exit Plan:
Sell most of the position on sustained close below the 200 day MA and if the price breaks the trend line.
DXY is gaining strength. MACD crossover is bullish. 55 day MA is above 200 day MA which too is bullish. 200 day MA is in line with the rising bullish trendline.
If the bounce sustains, long-term bullish target would be 1.05-1.06 range which has acted as resistance almost 3-5 times on the weekly. if the trade works I will sell 3/4th of my position in the 1.04-1.05 zone and leave the trailer for possible 1.06 breakout in the long term.
CAD gains if BoC raises rates (hasn't shown any intentions) or when commodities (especially bullish Crude Oil) rises. These two events would negate the trade.
Exit Plan:
Sell most of the position on sustained close below the 200 day MA and if the price breaks the trend line.