USD/CAD: Levels, Ranges, Targets

 

Last bottom reported Monday was 1.2854 and 1.2826. USD/CAD dead stopped at 1.2826 based on ISM and rebounded since Monday to 1.2861 highs.
Today’s USD/CAD bottom is located at 1.2780 and reinforced by 1.2753, 1.2741 and 1.2737. USD/CAD price overall is low to middle range which means any spikes higher or lower won’t hold. USD/CAD base today is built upon 1.2233 and down from Monday’s 1.2484.
USD/CAD 1.2780 bottom is achieved by breaks at 1.2812 and 1.2796. If bottom is seen, USD/CAD must come back to 1.2796 then 1.2812. if bottom breaks at 1.2780 to 1.2753, USD/CAD must come back to 1.2780 and 1.2796 then 1.2812.
Higher for USD/CAD intra day then 1.2860 must cross followed by 1.2875, 1.2877, 1.2883 and 1.2893. Targets today are located at 1.2905, 1.2914. The top channel levels are found at 1.2935 and 1.2957. Current lower 1.2905 – 1.2914 targets are down from Monday’s 1.2946 and 1.2949. Why.
The vital point breaks for USD/CAD above 1.2957 are many and massive and begin at 1.2983, 1.3006, 1.3033 and 1.3110. The level at 1.3110 is down from Monday’s 1.3186. To understand 1.3110, a break opens the clear path to 1.3521 and up from Monday’s 1.3481.
The area from 1.2983 to 1.3110 is recommended to stay away. Further to 1.2983 is any price above 1.2914 leaves the normalized range. Overall, USD/CAD’s wider range is located from 1.2200’s to 1.3500’s.
Any opportunity to see USD/CAD higher then price must hold above 1.2900, 1.2973, 1.3066, 1.3093 then 1.3110. USD/CAD in the high 1.3200’s becomes seriously overbought.

The general BOC story in the past year was for the FED to raise in order to see USD higher and CAD lower. With the FED on hold, USD/CAD has every ability to travel far lower over time.

 

Brian Twomey, Inside the Currency Market, btwomey.com

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