Sforex

Loonie: It was 4 month rally, so let it corrects.

FX:USDCAD   U.S. Dollar/Canadian Dollar
240 0 1
USDCAD             retraced sharply due to:

- While major central banks increase easing, BOC             refuses to do that.
- Energy price bounces from the troguh.

We see U/C rallied 4 months from 1.2810 to 1.4680 : It was 1800 pips : That is a great move, so it's not surprising if it corrects from the peak.

But how much does it retraces ?

Draw Fibonacci retracement from 1.2810 to 1.4680, then we will see U/C now stops at 38.2% fib level. It also was an old resistance now becomes support.

38.2% is a good stop of correction, but I allow it retraces to 50% level at 1.3740

However, I see U/C also tests the ascending trend line . It's a big deal if it breaks trend line to test 50% Fib retracement, because it could be a trend reverse.

I hope USDCAD             stops the depreciation. Why ? Energy oil             is still vulnerable, so a BUY is still a good choice.

This week, main focuses are payrolls, Canada employment report, and RBC PMI.

Let market moves.
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