Loonie: LONG is favourite, but the rally is limited at year high
Last week, there is a fact that although US Nonfarm payrolls was positive, US employment report also beat the forecast.
Payrolls fade the Canada Employment Report.
Oil begins to resume its decline and weight on Loonie, so the bias to trade USDCAD is still a BUY but the rally should be limited at year high.
Current price is : 1.3300, Year high is 1.3450 : 150 pips from current price to year high.
Indeed, current price doesn't support an instant position. With risk and ratio 2:1, stop loss is at 1.3225, this level is not stable, this is not a strong support. I think strong support is at 1.3035, so a better point to entry should be at 1.3100
I think USDCAD has had a great effort to break Kumo cloud and SMA50. We should watch the price action is choosing what level to react; according to my view, I see SMA50 is a level which USDCAD chooses.
So I see SMA50 is at 1.3160
A pending LONG position at 1.3160, stop loss at 1.3035, take profit at 1.3450 : That is my final view.
Payrolls fade the Canada Employment Report.
Oil begins to resume its decline and weight on Loonie, so the bias to trade USDCAD is still a BUY but the rally should be limited at year high.
Current price is : 1.3300, Year high is 1.3450 : 150 pips from current price to year high.
Indeed, current price doesn't support an instant position. With risk and ratio 2:1, stop loss is at 1.3225, this level is not stable, this is not a strong support. I think strong support is at 1.3035, so a better point to entry should be at 1.3100
I think USDCAD has had a great effort to break Kumo cloud and SMA50. We should watch the price action is choosing what level to react; according to my view, I see SMA50 is a level which USDCAD chooses.
So I see SMA50 is at 1.3160
A pending LONG position at 1.3160, stop loss at 1.3035, take profit at 1.3450 : That is my final view.