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
Recommended Content
Editors’ Picks
EUR/USD holds gains above 1.0700 as USD struggles ahead of data
EUR/USD is posting small gains above 1.0700 in the European session on Thursday. The pair remains underpinned by a sustained US Dollar weakness, in the aftermath of the Fed policy announcements and ahead of more US employment data.
GBP/USD stays firm above 1.2500 amid US Dollar weakness
GBP/USD is consolidating the rebound above 1.2500 in European trading on Thursday. The pair's uptick is supported by a broadly weakness US Dollar on dovish Fed signals. A mixed market mood could cap the GBP/USD upside ahead of mid-tier US data.
Gold price trades with modest losses amid positive risk tone, downside seems limited
Gold price edges lower amid an uptick in the US bond yields, though the downside seems cushioned. A positive risk tone is seen as another factor undermining demand for the safe-haven precious metal.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.