USD/CAD Price Analysis: Bulls are moving in at 1.36 round number, eyes on NY open range's low
|- USD/CAD bears have moved in but there could be prospects of a bullish correction.
- A retest of the NY open's range could be in order for the day ahead.
The chart below chart illustrates the key levels that include the opening hour's range of the New York session that could see the price drawn to in the coming sessions for a retest where the lows of the range meet a 38.2% Fibonacci retracement near 1.3660.
USD/CAD H1 chart
On the way there, trapping breakout shorts, the price will need to break back above Tuesday's low of 1.3640. If this area were to hold, then there will be prospects of a deeper move through last week's high again of 1.3612 and Wednesday's low of 1.3602 to retest this week's low of 1.3559 that could be broken should month-end flows accelerate the squeeze on long dollar positions.
USD/CAD weekly chart
If the price continues to deteriorate, as per the above thesis, then a 38.2% Fibonacci correction of the weekly bullish impulse aligns with around 1.35 the figure. This could be a feasible target should this week's low, so far, give out for a fresh low for the current week. Following the shake-out, there could be prospects of a surge higher again if markets commit to the US dollar again as fundamentals once again take over.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.