USD/CAD. Bottoms are located at 1.3476 and 1.3442, bottoms coincide with extreme buy points at 1.3433, 1.3427 and 1.3353. Above sell points located 1.4019, 1.4021 and 1.4189. But big line breaks are found at falling levels at 1.3701 and 1.3778. Intraday targets 1.3557 and 1.3577 from 1.3510 close. Resistance points above located at 1.3538 – 1.3548. Both must break to head higher. Further out targets 1.3744 and 1.4239. Intraday targets and bottoms are consistent with immediate 198 pip range points between 1.3411 – 1.3609. Range movements are 36 pips and extremely low. Overall ranges in USD/CAD are extremely wide. Positive trends are located from averages 50 – 253, negative from 5 – 50. Trend information written for my own purposes.
USD/CAD is in buy dip mode as oversold begins at the 1.3476 and 1.3442 bottoms. A bottom is forming in USD/CAD while tops are far higher. USD yields consistent with AUD are far to low and misaligned to money market rates. Fed funds trading ranges for February was 0.25 – 56 but closed at 0.37 inside a new 5 day range between 0.30 – 0.56. Its enough to offer big supports in USD/CAD.
Brian Twomey, Inside the Currency Market, btwomey.com