Canadian Dollar Under Pressure As Risk Aversion Returns
I was prudent not to chase the USD/CAD bearish rally last week as the pair never broke below the 100-Day SMA at 1.0295. After several failed tests I was inspired to get long the pair and I warned last week a sharp reversal did occur as we started to see risk aversion return to the market. The current advance has slowed at 1.0476-50.0% Fibo of 1.0678-1.0276. Those not already long will want to wait for a break above the level to target 1.0523-61.8% followed by 1.0600.
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