USD/CAD Fresh Highs; Risk Tightened to 1.0840
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-After a month of trading between roughly 1.0700 and 1.0560, USDCAD has broken out. Measured objectives from the breakout above the 2011 high range from 1.1680 to 1.1910. The Jul 2009 high rests in this zone at 1.1724 and the 2007 high is near the top of the zone at 1.1875.
-From an Elliott perspective, it’s possible that the rally from the 2012 low composes a ‘3rd of a 3rd (or C)’ wave from the 2007 low. Such market swings tend to exhibit extreme rates of change (so please refrain from terms such as ‘overbought’ or ‘divergence’).
Trading Bias: Staying long, stop is tightened to 1.0840. If that is taken out, then support would come in below 1.0800.
LEVELS: 1.0726/36 1.0760 1.0798 | 1.0915 1.1035 1.1157
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.