USDCAD - Negative Channel to dominate

As expected an early profit taking rally last week proved very limited with selling interest renewed below the key 13 day moving average. The result was a 3rd down week in a row, the most negative levels traded for 14 months and USDCAD tracking the lower end of bearish daily and weekly Keltner channels. The speed and scope of the decline means that signals for sentiment are oversold but while this may lead to an early reactive move, our studies are negative and we look for prices to continue to track the channels lower.

So, my view for this week is bearish at current 1.2665 levels and on any rally to 1.2748. The risk is 1.2876 with downside targets of 1.2555, 1.2460 and 1.2417.

3 Down Weeks

narabyzo

Negative Channel

Jun

 

Any opinions, news, research, analysis, prices, trade recommendations or other information is provided as general market commentary and for educational purposes, and does not constitute investment advice. Any statements about profits or income, expressed or implied, do not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profits or losses, and agree to hold 3CAnalysis.com and any authorized distributors of this information harmless in any and all ways. 3CAnalysis.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Forex, Futures, Stock, and/or Options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex, Futures, Stock, and/or Options markets. The information contained in these pages is neither a solicitation nor an offer to Buy/Sell Currencies, Futures, Stock, or Options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed.

Please also note that 3cAnalysis does not perform any regulated activities and does not report to any regulator.