- Stop loss 1.211
- Entry level 1.227
- First Target at 1.2354
- Next targets to test at 1.2384, 1.2505, 1.2555
The rebound from 1.2139 extended higher last week and found some strong momentum after hitting the levels. As noted corrective pattern is completed with support holding the levels stronger at end of week.
We expect consolidation to be around the fib level 23.6, and a break above this should see stronger move to the upside. Hence, we’d be expecting resuming of larger up trend from current levels with pin bar closing above of 61.8 and price action at end of week closing above 50.0 level, target levels being at 1.2354. A break here should set up a nice upward bias to 1.2384 and later at 1.2505. Meanwhile price below 1.211 should dampen the upward bias and we shall exit the above set-up on upward bias.
Outlook on USD/CAD remains bullish for the week.
- The Existing Home Sales for the US
- The Durable Goods Orders
- The number of New Home Sales released by the US
- Gross Domestic Product Price Index
- The Initial Jobless Claims released by the US
- Canadian for the period of April Non-Farm Payroll
- Average Weekly Earnings
Area of Interest
- Support level at 1.2139 levels finding strong support with price closing with pin bar.
- Pin bar at support levels also the flip area.
- Fib level 61.8 rejected strongly and with price action closing above the Fib 50.0 Level.
- Key area to target to the upside shall be at 23.6 for the week.
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DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.