Talking Points
- Six year high in USD/CAD
- Nearing key Fibonacci/Gann convergence
Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.
USD/CAD cleared the March high around 1.2830 this week to trade at its highest level since March of 2009. A weekly close above 1.2830 (which looks likely) will further confirm the breakout in the exchange rate and set the stage for a more important run higher in the weeks ahead. Psychological resistance is to be expected around 1.3000, but a convergence of the 127% extension of the March – May decline and a Gann angle line related to the 2013 low around 1.3080 looks to be a more important upside attraction/pivot for Funds in the near-term. A rate-of-change (ROC) divergence on the daily is a minor negative, but also offset somewhat by surging daily OBV (On-Balance-Volume). A daily close under 1.2830 would be concerning, but only aggressive weakness under 1.2650 would warn of a false break to the upside and turn the technical outlook outright negative.
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USD/CAD Daily Chart: July 17, 2015
Charts Created using Marketscope – Prepared by Kristian Kerr
LEVELS TO WATCH
Resistance: 1.3000 (Psychological), 1.3080 (Fibonacci)
Support: 1.2830 (March high) 1.2650 (Fibonacci)
Strategy: Buy USD/CAD
Entry: Buy USD/CAD at 1.2895
Stop: Daily close below 1.2830
Target: Open
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail instructor@dailyfx.com. Follow me on Twitter at@KKerrFX.
