USDCAD Rally to Extend

Alan Collins 3cAnalysis

Initial downside yesterday stalled, and reversed, at the same levels as the previous day. This time the bounce accelerated as profit taking developed at oversold extremes and with USDCAD at 2 ½ year lows. Wednesday’s entire net decline of more than 60 pips was regained by this rally. The move is assessed as counter trend but allowing for an early reactive move I'm looking for a Temporary Buy around 1.2550 but leaving room to also Buy any Dip to 1.2532, Asian low. The risk is 1.2498, yesterday's Marabuzo line, with an immediate target of 1.2581. A move through that point then exposes sentiment to 1.2610, July 21st top, and 1.2642, July 20th peak.

Negative Channel

Losses Regained

USDCAD Current Trading Positions

Sell 75%

Buy 25%

Avg Sell Price 1.2742

Avg Buy Price 1.2878

Liquidity Distribution

Author

Alan Collins

3cAnalysis

Alan has been involved in the financial markets for more than 30-years.

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