Guest Commentary: Excellent USDCAD Trade on the Double Double
We are getting excited by the price on $ Canada if not necessarily the time as it should provide the long awaited buying opportunity right now! And possibly later as well. (The Double Double)
Patience has been rewarded!
$ Canada has maintained the sell-off from the secondary 1.0360 high to encourage our view of a deeper corrective retracement to beyond the 1.00120 50% retracement. Indeed with the loss of the 1.0160 previous low it should now have entered the latter stages of the decline from 1.0360.
Short Term Spike
Although 1.0160 should cap in the short term we suspect the next new low will be sufficient to end a 5 wave and therefore a potential correction from the 1.0445 high. We will cover shorts then and start significant buying at 1.0100-10 (minor 5=1) down to the ideal 1.0075 the C=A target for an initial rally back through 1.0160 to the 1.0200-20 region but with potential to explode through 1.0240 and 1.0360. An Excellent Risk Return Setup then.
How Far and Wide?
Our stops…well given the possibility of an extended 1.00-1.02 consolidation base as highlighted on the daily perspective (probably implying a double zigzag from 1.0445) we will add at 1.0050 and finally a possible 68% at parity with 99.70 stops.
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