By: John Ursus
Timeframe: W1
Recommendation: Long Position
Entry Zone: 1.0630 – 1.0680
Take Profit Zone: 1.1130 – 1.1180
Stop Loss Zone: 1.0500 – 1.0550
The USDCAD has rallied strongly since September 2012. The rally took this currency pair from an intra-day low of 0.9632 to an intra-day high of 1.1278 before a correction took place. Now this currency pair is trading at a very strong 50.0 Fibonacci Retracement Fan where it is likely to find support and attempt a rally which will face its first resistance at the 38.2 Fibonacci Retracement Level.
Forex traders should be careful around current levels, but expect price action to find support while economic data out of Canada may fuel a reversal rally. Any corrections from current levels should be taken as a good opportunity to enter new long positions. Downside potential is currently rather limited while upside potential is very attractive.
