Against a background of negative weekly signals for sentiment the market was unable to extend last week's decline to any significant degree yesterday. The market did spike to the most negative levels traded for 14 months yesterday but profit taking developed at oversold extremes. The resulting rally was limited and although the move did end a sequence of 3 down days USDCAD remains near to the lower band of a falling Keltner channel.
This has been emphasised by renewed selling in Asia and I'm looking for this to continue,and so am bearish at current 1.2650 levels and looking to Sell any Rally to 1.2678. The risk is Asia’s 1.2703 peak with an immediate target of 1.2627, yesterday's low. A move through that point then exposes sentiment to 1.2598 and towards 1.2555, the May 2016 open.
Negative Channel
Profit Taking
USDCAD Current Trading Positions
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