$cad has retraced from a strong Resistance level and price is now sitting at the support level of a rising channel. If we get a Bullish signal here, I will take a Long position targeting 1.2570 with a stop loss at 1.2480. If price is unable to break above 1.2525, then we could see price heading lower at least to 1.2470.
The Bulls are still very much in control of this market. There's been some bullish pressure in the last few days and this may be set to continue.
The sellers tried to put in a double top but this was a set up for the bulls to break the Trend line and now price is consolidating giving bulls another opportunity to buy.
Reasons for short bias:-
1. price testing Trend line,
2. price at channel resistance
Daily Double Top completed yesterday so this may be a continuation down.
U.S $ CB Consumer Confidence in 3 hours ( 15oo Hours BST. )
Market may hold off any major movement until then.
I'm keeping an eye on £aud. I was expecting price to rally at this level but I can't seem to find the buyers which makes me wonder where they are if there are any at all.
We could be in for a long way down to 1.6900 (400 pips) if price breaks below this support level. On the other hand, if we get a strong bullish set-up, then we could see price rally to 1.7750...
We have some bulls here and what price does depends on how strong they are.
If $43.00 holds, we could see a bounce here. If price breaks below $43.00 then we could see a continued sell off from yesterday.