USD/CAD suffered its most bearish week of the year by Friday’s close, following weaker than expected earnings data within May’s NFP report.
Prices appear stretched on the daily chart, so we’re hoping prices can retrace and consolidate below a resistance level before seeking a short setup.
We’re targeting the February lows, which is also near the 38.2% Fibonacci retracement level. If this level breaks, it confirms a long-term reversal on the weekly charts.
Whilst traders remain net-short the Canadian dollar futures market, their bearishness has been dwindling throughout the year which can of course happened ahead of a major reversal.
City Index: Spread Betting, CFD and Forex Trading on 12,000+ global markets including Indices, Shares, Forex and Bitcoin.Click here to find out more..
This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Ltd. ADVFN Ltd does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.
From the news and opinion pieces on pages like this to
share discussion forums,
charting tools,
financials,
live share prices and
Level 2,
order book data
If you trade or invest ADVFN has the tools you need to make the right decisions.
Hot Features
Premium
Level up your trading with our powerful tools and real-time insights all in one place.
