ZuluTrade Blog

Market View

USDCAD is recovering as a Loonie

Friday, August 11, 2017 10:01 AM GMT

USDCAD is going like a Loonie. After a deep correction and being too oversold, USDCAD is performing an amazing recovery rally. It’s moving in a straight line to the upside. On the daily, we have noted a critical resistance zone in which there is a confluence of 38.2% Fibonacci retracement as well price structure on the left. This may be a decent area for trading sell setups. Overall, the momentum is bullish as price follows 5 and 21 EMA. Any setback on those MAs may give short term buying opportunities.

Heading to the hourly timeframe, we are using the Andrew’s Pitchfork for having an intraday trend bias. The pair reached the next target as noted (check post) and created a higher Swing Low (SL1). It is currently retracing back and potentially, it will create a new higher Swing Low. We will use RSI (5) to confirm this. The pair has to close below SL1 to negate the positive intraday outlook. Next upside targets are 1.277 – 1.28 – 1.285.



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