USD/CAD bounces back to resistance at 1.2750/70

Jason Sen DayTradeIdeas.co.uk

EUR/USD – USD/CAD

EURUSD longs working very well this week as we continue higher to next targets of1.2200, 1.2225/30 & 1.2255/60 as expected. We topped at 1.2273. Outlook remainspositive but we are severely overbought so some profit taking in to the weekendcould be seen.

USDCAD shorts at 1.2770/80 worked perfectly on the slide to our target of of1.2695/85. We bottomed exactly here for an easy 80 pips profit.

Today's Analysis

EURUSD could see profit taking but the downside is likely to be limited with firstsupport at 1.2220/10. Try longs with stops below 1.2200. A break lower meetssupport at 1.2180/70. Longs need stops below 1.2150.

Minor resistance at 1.2265/75. If we continue higher look for 1.2290/1.2300.

USDCAD bounces back to resistance at 1.2750/70 but this time we could breakhigher to ease oversold conditions. There is minor resistance at 1.2785/95 but abovehere targets 1.2840/50.

If we do hold 1.2750/70 look for a dip to 1.2735/25 before a retest of 1.2695/85.Further losses target 1.2670/60 & 1.2630/20.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.

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