Looks toward the next targetsDid you catch Adam on TV yesterday?
He called for a lower CAD and indeed we are getting more of a follow through move in trading today.
Technically, the USDCAD continues to march higher and further away from the 100 day MA. The next targets off the daily chart, come in at the 1.2859 level (just a few pips away from that target now). Sellers may look to take a little profit here with stops on a break higher.
If the bulls keep the pair running higher, the 1.29268 level becomes a key target. That level represents the 50% of the move down from the May 2017 high (see chart above).
Making that area even more alluring is that the July hike was on July 12th and on that day, the high price stalled at 1.2939 — not too far from that 50% level.. If the bullishness can continue, I would think that would be a pretty good level to stall the climb (or fall in the CAD).
Plan the trades….
Drilling to the 5 minute chart, the pair has trended higher, with ok corrections but limited corrections today (see chart below).
The 38.2% of the move higher currently comes in at 1.2825. The 50% comes in at 1.2815. Those can be risk level. Also of significance will be the rising 100 bar MA (blue line in the chart below). The line is lagging the market but as time goes by, if there is a stall at the 1.2859 level, there could be a corrective test. Keep an eye on that line to help determine a shorter term corrective bias shift back to the downside.
Right now, the bulls remain in control with a test of the 1.2859 level looming…..