Nick Nasad
All posts from Nick Nasad
Nick Nasad in Nick Nasad,

USD/CAD - Failure to Break Support Suggests Further Upside

Following up on this post about the USD/CAD, the Loonie certainly can't get any traction going, and used the key level we were watching at 1.0565 as support.

  • With the upward sloping support trendline holding, and the horizontal support pivot also holding, the case could be made that we continue to uptrend in this pair that started back in late October.
  • The most recent price action would then be just a counter-trend move within that larger uptrend.
  • A break of the short-term downward sloping resistance (a break-out of the counter-trend channel) would likely target 1.07, and if that level clears we can be looking at some longer term targets in the pair. 
  • Without an already open position though, its best to wait and see what happens with the FOMC data and how the USD reacts.