USD/CAD Classical 03.24
USD/CAD: Our overall outlook for the pair remains highly constructive and as such, any dips towards parity should be used as formidable buy opportunities. At this point however, we can not rule out the potential for a short lived dip below the 1 handle to test 0.9900. But any dips should ultimately be well supported by 0.9900 which represents the 78.6% fib retracement off of the major 2007-2009 move. For now, bulls should be encouraged by last Friday’s strong bullish outside day which managed to consume the previous two days of price action, after initially extending to fresh 2010 lows by 1.0060 and the sharply reversing back above 1.0100. The key short level to watch above comes in by 1.0240, with a break to accelerate gains. Back under 1.0100 would delay and give reason for concern.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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