Greetings traders
Today I present a speculative punt at USDCAD. Since March 2015, there has been a downwards trending channel. However, in May 2015, there was a trend reversal and a new bottom had been formed leading to a bullish trend. This new bullish trend created an upwards trendline. This formed a triangle structure. In the past week, there was enough bullish momentum to break this triangle. There was a retest of the downwards sloping trendline and the bullish momentum remained intact, allowing an advance to the 1.618 fib from the swing high to swing low from April 2015-May 2015. The DeMarker indicator which is useful for calling "tops" and "bottoms" shows room upwards as well.
Price action on the pair shows that the bulls, despite being in overbought territory have enough conviction to spur upwards. 1.31-1.32 has always been a long term target for many professionals and institutional traders. Fundamentally speaking, USD is poised for a rebound among risk aversion once the "Grexit" clears away and CAD is fundamentally weak now as well.
As always, trade safe.
Yours,
GekkoWS
Today I present a speculative punt at USDCAD. Since March 2015, there has been a downwards trending channel. However, in May 2015, there was a trend reversal and a new bottom had been formed leading to a bullish trend. This new bullish trend created an upwards trendline. This formed a triangle structure. In the past week, there was enough bullish momentum to break this triangle. There was a retest of the downwards sloping trendline and the bullish momentum remained intact, allowing an advance to the 1.618 fib from the swing high to swing low from April 2015-May 2015. The DeMarker indicator which is useful for calling "tops" and "bottoms" shows room upwards as well.
Price action on the pair shows that the bulls, despite being in overbought territory have enough conviction to spur upwards. 1.31-1.32 has always been a long term target for many professionals and institutional traders. Fundamentally speaking, USD is poised for a rebound among risk aversion once the "Grexit" clears away and CAD is fundamentally weak now as well.
As always, trade safe.
Yours,
GekkoWS