Buy US$/CAD. A trade idea for a medium term move higher.
As you can see from the monthly chart below, the US$CAD is trying hard to break above long term resistance beginning from around 1.6000 in August 2002.
Monthly
If the US$ can move higher, then the first resistance would be at the Fibo resistance, below 76.4% of 1.1277/1.0620 at 1.1120, seen on the daily chart below. Above there would see a return to 1.1277(also the 50% pivot of the move down from1.3062 in 2008 to the low at 1.0620.) This may prove quite strong resistance but a break would head a fair bit higher, suggesting a run towards the red horizontal line on the weekly chart, also below – where the July 2009 high was seen at 1.1732.
The short term charts are becoming overbought and we may see a dip, but if it does return to 1.0950/1.10, then I think it is probably a good medium term buy.
SL should be put in place below the top of the weekly cloud, seen in the weekly Ichimoku charts below, somewhere below the breakup level of 1.0935 and preferably below the weekly Tenkan, currently at 1.0900
Daily
Weekly
Weekly Ichimoku
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