Weekly Technical Analysis – [Bonus Video]
(Daily Chart) as you know we had positioned ourselves for a rally in this pair after the potential double bottom had formed having gone Long earlier this month in the 1.5215-1.5230 area and then again at 1.5360 with Stops below 1.5180 at first and later at 1.5195. Our targets were 1.5650 and above.
We took most of the position off at 1.5475 as we saw selling pressure coming in above that level and after last Thursday’s pin bar we decided to take the remainder off. The market now could retreat all the way to 1.5107-151.30
(zooming in) Friday’s close was at the 50 Fib level of the recent bounce. If this level doesn’t hold as support next week and we close below it, we are likely to then see a push down to 1. 5107-151.30.
USDCAD
(Daily Chart) last week we hinted that we thought we may see a bounce off 1.2870 and might go Long in half risk but would ultimately favour a retracement anywhere near the 50 sma to sell into, mostly because we saw the market gravitate to 1.2690 and the 200 sma which coincide with the 50 fib of the big rally.
We did get a bounce off the 38.2 Fib in the end and we failed to get involved. Next week we will be watching this key 50 sma level to see if we get an upside breakout with a re-test as support and go Long with 1.3350 and above as target or if we get a fake breakout and a resumption to the downside towards our original target of 1.2690.Thank you for watching .. please take a look at our subscription service STTS (Short Term Trade Setups) which covers also other major currencies and other markets which we are likely to trading and includes entry levels, stops and targets combined with our tried and tested risk management strategy.
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Have a great week