Steve Miley, MSTA
MarketChartist
Yet another new recovery high to start the week, completely rejecting the dip through minor support last week to reinforce bullish pressures.
The Monday probe above the 61.8% retrace of the entire 2009-11 sell off at 1.1655 maintains upside risks from the strong bull rally from early December.
Short-term Outlook - Upside Risks
Threat is now to a key weekly failure peak from 2009 at 1.1727.
Overshoot threat through year-end id to a minor weekly target from 2010 at 1.1817 and maybe even the psychological/ option target at 1.2000.
Momentum: The 8-day RSI, short-term momentum is positive, slightly OB (confirming new highs), but still has scope to go still higher this week.
What Changes This? Below 1.1394 eases bull risks; through 1.1313 signals a neutral tone, quickly shifting negative below 1.1192.
For Today:
We see an upside bias through 1.1685, risk to 1.1727.
But below 1.1600 aims for 1.1547.
4 Hour USDCAD Chart
Weekly USDCAD Chart
THERE IS SUBSTANTIAL RISK OF LOSS IN TRADING FUTURES, OPTIONS AND FX PRODUCTS. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE
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