USD/CAD closed 1.3270 and like USD/JPY, EUR/USD, and EUR/CAD price is dead center, particularly USD/CAD as price is exactly dead center range. Vital points below for USD/CAD is found at 1.2648 and 1.2613. Above vitals are found at 1.3956 and 1.4009. Range total is found at 321 pips. That’s 1.3591 above and 1.2949 below from the 1.3270 close. But price is dead center as mentioned so intraday based on the 1.3270 close 1.3430 and 1.3110 is much more realistic unless the longer term view is preferred. Intraday CAD needs a break of 1.3257 below or 1.3287 above. A significant top is not seen anytime soon which means CAD has ability to travel far higher. USD/USD intraday and longer term is in buy dip mode. But again buy dips assumes conditions remain and Big Sis Yellen is on track to raise. Any sign of a renege on raising Fed Funds, USD/CAD will fly lower. Bu then USD/CAD becomes a hindrance in the higher price for CAD on the BOC. So fly lower, good question, maybe the BOC intervenes to rescue CAD. just speculations.
USD/CAD. Bottom. 1.3192. Range break above 1.3310, Below 1.3205. Overbought sell point 1.3354. Strategy. Longs above 1.3257, Target 1.3354. Then reverse short to target 1.3305. Points on the way up, 1.3269, 1.3276, 1.3288, 1.3308, 1.3314, 1.3319, 1.3336, 1.3354. Dead center range again like all other pairs we want to be careful, falling in love with the trade is not required.
Shorts below 1.3257, target 1.3224. Watch for reversal here to target 1.3257 and higher. Break 1.3224 continues points on the way down, 1.3255, 1.3253, 1.3250, 1.3240, 1.3234, 1.3230, 1.3211, 1.3192 Bottom. Bottom holds long to target 1.3224 and higher. 1.3224 must break to go higher. Dead center also means we should see volatility.
Brian Twomey, Inside the Currency Market, btwomey.com