Well done to those who bought 1.32!

For those who read Monday’s report on the USD/CAD you may recall that our desk underscored the possibility of a long trade from the 1.32 handle. As you can see, in recent hours 1.32 was challenged and has held firm. But why did we select this level? For anyone who missed Monday’s report, here’s why:

1.32 could be an option today. A break below the daily support level at 1.3212 would likely trigger stops positioned beneath this barrier, thus providing liquidity to buy into. Furthermore, let’s also bear in mind that beneath the weekly demand at 1.3223-1.3395, stops have also likely been activated thus providing additional liquidity.

Well done to any of our readers who have managed to jump aboard here, as we expect price to at least reach the H4 resistance pegged at 1.3263.

Our suggestions: Other than our recent call to buy 1.32, we do not see much else to hang our hat on at the moment.

Data points to consider: FOMC member Fischer speaks at 1pm, FOMC member Kaplan speaks at 8pm GMT+1.